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Steps to Starting a Small Business

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									                                                                                                              Steps to
                                                                                                                STARTING A SMALL

Table of Contents
STEP 1..
STEP 2.. Identify.a.Business.Opportunity. ..................................................................5
STEP 3.. ....................................6
STEP 4.. Prepare.a.Marketing.Plan. ...........................................................................8.
STEP 5.. Finance.Your.Business..............................................................................10
STEP 6.. Choose.a.Type.of.Business.Organization.....................................................11
STEP 7.. Register.Your.Business.Name....................................................................13
STEP 8.. Set.Up.Your.Basic.Bookkeeping.System......................................................14
STEP 9.. Consider.Provincial.Taxation.Issues............................................................15
STEP 10.. Consider.Federal.Taxation.Issues...............................................................16
STEP 11.. Register.with.Your.Municipality...................................................................17
STEP 12.. Contact.the.Workplace.Health,
.         Safety.and.Compensation.Commission.......................................................18.
STEP 13.. Insure.Your.Business. ...............................................................................18.
Appendix..Contact.Information. .................................................................................19

This. handbook. is. designed. as. a. guide. only.. While. every. effort. has. been. made. to. ensure. the. accuracy.,.neither.the.Department.of.Innovation,.Trade.and.Rural.,,.as.a.result.of.using.
the. information. contained. herein.. . For. precise. business. or. legal. advice,. including. an. understanding. of.,.please.consult.your.professional.advisors.
                                                                                                                                                                                                                           Steps to
                                                                                                                                                                                                                             STARTING A SMALL

                                                                                                                                        Assess Yourself:                          o	 Have. you. tried. owning. or. operating. a. small.
                    Introduction                               Some people run full-time businesses from their
                                                               homes. In fact, one-in-four Canadian households
                                                                                                                         Step 1         Do You Have What it takes?                .   business. before?. What. did. you. learn.    .
                                                               operate some kind of home-based business.
                                                                                                                                                                                  .                                                .
    Perhaps. you. have. wondered. about. starting. or.   .     Home-based employment is a common and logical           So,.you’      .   succeed?            work style in rural Newfoundland and Labrador.
    to. begin.. With. this. handbook. you. can. find. out.
                                                         .                                                                                                                        o	 Does. your. educational. background. prepare.
                                                               Overheads tend to be low as there are generally         you’,.you.should.          .    .     no new premises to buy or rent. Hours are flexible      consider. the. steps. involved. in. launching. your.
    business,             and new business ideas can be tested on a small         own. business.. This. publication. is. designed. to.       o	 Has.    your. work. experience. exposed. you.                             scale. It is often a way to learn about business with                             .                                                        .
                                                                                                                                                                                      to. the. type. of. business. you. wish. to. start. or.
                                                               very little capital and start an enterprise that is                                                                .   buy?. Can. you. demonstrate. this. experience.       .
      Small businesses make up almost 98 per cent of           almost debt free.
                                                                                                                       Entrepreneurship. offers. many. rewards,. including.       .   to.potential.backers?
      all Canadian enterprises. Small businesses in
      Newfoundland and Labrador account for close  
                                                                                                                                                                                  o	 Are. you. ready. for. long. hours. of. research,.
      to 40 per cent of all employment. Even large      .                                                              .
      corporations depend on the services and products                                                       
                                                             If. you. need. more. information,. or. would. like. to.
      of small businesses. Keep in mind that all large       discuss. your. business. ideas,. call. your. local.
                                                                                                                       by.your.choices,.skill.and.determination..There.are,.      o	 Do.  you. have. the. ability. to. identify. and.
      businesses were once small businesses.                                                                           however,.many.risks..                                      .    .
                                                             Department. of. Innovation,. Trade. and. Rural.
                                                             Development. office. and. speak. to. an. Economic.                                                                   .   opportunities?
                                                                                                                       Many. would-be. entrepreneurs. are. not. aware. of.
    Personality?. Yes,. the. personal. qualities. you. .     Development. Officer.. Also,. check. out. the.                                                                       o
                                                                                                                       the. effort. involved. in. starting. and. operating. a.
    bring. to. business. are. just. as. important. as.       department’s. website. at.      .                                                              .                                                    .
                                                                                                                                                                                      term. goals. and. then. follow. through?. Do. you.
    intelligence. and. education.. Successful. business.                                                                    .   regularly.set.objectives.and.then.evaluate.and.  .
    people. tend. to. be. hard-working,. confident,.         in.the.Appendix.                                                                                                     .
                                                                                                                       and. your. finances.. In. addition,. many. small. busi-
    optimistic,. self-driven. people. who. are. able.  .                                                     ,.and.many.
    to. overcome. obstacles.. Some. post-secondary.
                                                                                                                                                                                  o	 Can.   you. identify,. evaluate,. and. manage.
                                                                                                             ’s.        .                                                  .
    education. can. help,. but. it’s. not. essential.. .                                                               original.investment..That’                 .
    Perhaps. the. single. most. important. quality. to.
    succeed. in. business. is. a. desire. to. work. for.                                                               The. good. news. is. that. small. business.        .       o
    yourself.and.succeed..                                                                                             ownership. offers. you. financial. and. decision-          .
                                                                                                                       making.independence..If.your.venture.succeeds,.                                                                   you. gain. job. security. and. the. opportunity. to.
                                                                                                                                                                                  o	 Are. you. willing. to. take. risk. and. can,.it’                                                                                                                          .. you. distinguish. acceptable. risk. from.   .
    involved. in. the. day-to-day. management. of. a.                                                                                                                             . outright.gambling?
    business..Many.people.start.part-time.businesses.                                                                  Questions you should ask yourself:                         o
    out. of. their. homes. and. gradually. acquire. their.                                                          .    .   process?
    business.skills..                                                                                                  By. answering. the. following. questions. you. will.
                                                                                                                       gain. some. insight. into. what. is. needed. to. start.    o	 Do. you. seek. out. and. use. feedback?. Will.
                                                                                                                                                                                  .                                                    .
                                                                                                                                                                                      you. be. objective. about. other. people’s. ideas.
2                                                                                                                                                                                                             3
                                                                                                                                                                                                                     Steps to
                                                                                                                                                                                                                       STARTING A SMALL

    o        o                                                                . n	Your. local. Chamber. of. Commerce. or. Board.
                                                                                                                                        Identify a Business
    .   at.your.disposal?                                                                                                Step 2         Opportunity
                                                                                                                                                                                . .
                                                             If. you. answered. all. these. questions. positively.                                                              . .
    o	 Are.   you. a. self-starter?. Will. you. display.     –. congratulations.. You. have. all. the. qualities.
    .                                                    .
        initiative. and. accept. responsibility. for. the.                                                              Most. successful. businesses. start. with. a. good.     . n	Canada. Business. is. a. large. network.
                                                             necessary. to. start. and. operate. a. business.. In.        . . of. business. information. centres. that. are.  .
    .                            practical.terms,.however,           from.a.number.of.available.resources,.including:        . . located. in. every. province. and. territory..  .
    o	 Will. you. deal. effectively. with. competition?.                                                                  . .   .
    .   Success. will. attract. competitors. to. your.
                                                     .       As. an. exercise. to. strengthen. your. skills,. review.   . n	Business. contacts. and. acquaintances.             . . by.mail).and.periodicals.on.many.aspects.of.    .
    .                                                                            . .  .
                                                                                                                        . n	Business.magazines.and.newspapers.which.
    o                                                                     . . often. contain. business. success. stories,..       . .    .
                                                                                                                        . . for. the. Canada. Business. Newfoundland.
    .                         . . how-to. information. for. would-be. small.  .
                                                                                                                        . .
                                                                                                                                                                        .                                                           .
                                                                                                                                                                                . . and. Labrador. Business. Service. Centre. is. in.
    o	 Are.  you. able. to. attract. the. right. people.     If. you. are. still. unsure,. speak. with. one. of. our.                                                           . . the.Appendix.
                                                             Economic.Development.Officers.                             . .
    .   to. your. business?. Choosing. partners,.
    .   shareholders. and. key. employees. is.         .                                                                . n	Industry. publications. that. report. on. trends.
    .   extremely.important.                                                                                            . . and.developments.
    o	 Do. you. think. positively. about. yourself. and.                                                                . n	Trade.shows.
    .   your.abilities?
                                                                                                                        . n	Radio,.television.and.the.internet.
    o	 Are.  you. willing. to. prepare. or. assist. in.
    .   preparing. a. business. plan. which. details. .                                                                 . n,.consumer.or.corporate.
    .   every.aspect.of.your.proposed.enterprise?                                                                       . . buying.behaviour,.government.legislation.and..
                                                                                                                        . .
    o	 How.       effective. are. your. business.                                                                       . . Government. departments,. agencies,. trade.  .
    .   management. skills?. Do. you. have. general.  .                                                                 . . associations. and. industries. generate.
    .   knowledge. of. financing,. buying,. customer. .                                                                 . .  .
    .   relations,. advertising,. banking,. selling,.                                                                   . . opportunities.
    .   pricing,.     insurance.   and.     employee. .
    .   relations?. What. other. special. skills. will.
                                                      .                                                                 . n	Universities,. trade. schools. and. other.
    .   you.need?                                                                                                                                                        .
                                                                                                                        . .
                                                                                                                        . . technologies.already.developed.
    o	 Do. you. understand. the. various. laws. and.
    .   regulations. that. govern. your. business?.
                                                  .                                                                     . n	Government. departments. and. agencies.
    .   Have. you. considered. permits,. licenses,.                                                                     . . are. often. committed. to. increasing. the.  .
    .   zoning,. employee. deductions,. labour.   .                                                                                                                      .
                                                                                                                        . . volume. of. government. purchasing. in. their.
    .   relations,. taxes,. record. keeping. and.                                                                       . . area.of.operation.
    .   shareholder.agreements?
4                                                                                                                                                                                                                                       5
                                                                                                                                                                                                                        Steps to
                                                                                                                                                                                                                          STARTING A SMALL

                                                              Highlight. the. competitive. advantages. of. your.          your.distribution.strategy?      6. Required Investment
      Step 3        prepare a Business plan                   business. over. others. in. the. field.. If. the. plan.     .   Describe. the. amount. and. form. of. investment.
                                                              concerns. an. existing. business. (modernization.           will. be. your. promotional. strategy?. See. Step. 4.
                                                                                                                                                                                  required. and. the. timing. of. cash. requirements..
                                                              or. expansion). give. a. brief. history. including.                                                             .
                                                                                                                          for. a. more. detailed. description. of. creating. a.
                                                                                                                                                                                  Detail. the. sources. of. funding. and. the. purpose..
      Starting a new business is often an adventure into      successes.and.failures.                                     marketing.plan.
      the unknown. There will be many questions that                                                                                                                              Outline.the.repayment.terms.of.borrowed.funds..
      you must answer, questions like: Will I be able to                                                                                                                
                                                               2. the Market                                                3. Management
      produce and sell my goods and services in volume                                                                                                                            versus.operating.costs.(
                                                              Describe. the. market. you. are. engaged. in. or.                                                             .
      and at a price which will generate a profit? How
      much money must I make to cover my expenses
                                                              wish. to. enter. and. describe. who. will. buy. your.       the. proposed. management. of. the. business..          Other Benefits of a Business plan
      and generate a reasonable salary? Is there a                                                                   .
                                                              product. or. service. and. why.. A. great. idea. for. a.    Describe. your. own. background. and. that. of.         Once. a. business. plan. is. completed,. it. may.
      sufficiently large enough market out there for my    .    key. employees. and. managers. with. individual.        be. possible. to. further. analyze. your. proposed.
      product?                                      ,     .    resumes. where. possible.. Include. any. special.
                                                              market,. particularly. in. emerging. technologies,.    .     with.a.range.of.prices.that.consumers.will.accept..
    In.Step.1,      but. this. takes. deep. pockets.. Generally,. it. is.                                                               Analysis. of. your. costs. will. help. you. determine.
    skills,                 4. Manufacturing or Delivery process                  the. cost. of. producing. the. product. or. service..                                                                                Describe. how. you. plan. to. manufacture. the.         You.must.determine.accurately.the.cost.of.doing.
                                                              Describe. your. proposed. product. or. service..    .       product. or. deliver. the. service.. Describe. any.     business.. You. cannot. estimate. sales. until. you.         Avoid. technical. terms. and. highlight. the. key.          special. equipment. or. processes. involved.. Cover.    can. set. prices. and. you. cannot. set. prices. until.
    and. fully. develop. your. business. . idea.              features. that. will. distinguish. the. product. or.        items. such. as. facilities,. equipment,. labour,.      you.know.accurately.what.your.costs.are.
    is. for. you. to. prepare. a. business. plan..            service. from. competitors.. Products. may. be.             materials,,.materials.handling.
    This. plan. will. help. you. to. think. about. all.       described. as. a. collection. of. attributes. (size,.       and. storage.. Highlight. critical. stages. of. the.    Writing Your Business plan
    aspects. of. the. business. and. may. help. you.          colour,. shape,. materials,. etc.). which. produce.                         Canada. Business. Newfoundland. and. Labrador.
    avoid. costly. oversights.. The. business. plan. also.    various. benefits. (slices,. dices,. chops,. etc.)...                                                               also. has. a. number. of. resources. on. business.
    provides. a. basis. for. evaluating. the. viability. .    The. status. of. patent,. trademark. and. other.              5. Financial projections                              plans,
    of. your. proposal.. Be. thorough,. accurate. and.        protection. should. be. addressed. in. this. section.       Financial.statements.should.include.a.projected.        mail..
    concise. as. you. work. your. way. through. the.          (                balance.sheet,
    business. plan. elements. described. below.. The.                                                                     statement.for.the.first.three.years.with.the.first.            Estimate. the. size. of. the. market. nationally.       .   year. broken. down. monthly.. Provide. a. detailed.
                                                              and. locally.. Describe. whether. the. market. is.      .   list. of. assumptions. included. in. the. financial.          growing. or. shrinking.. Consider. your. competitive.
                                                              edge.. Explain. how. you. intend. to. capture.              develop.the.product.or.service.
     1. the Opportunity                                       a. slice. of. that. market. and. the. strategy.         .
                                                              you. will. follow.. For. example,. will. you. produce. a.
    Start. with. a. brief. description. of. the. business..
                                                              high-quality. relatively. expensive. product. aimed.
    This.shows.potential.investors.and.others.the.kind.   .
                                                              at. a. niche,. up-market. group. or. will. you. mass.
    of. opportunity. your. business. represents.. Avoid.
                                                              produce. inexpensively. for. a. larger. market?. Are.
6                                                                                                                                                                                  7
                                                                                                                                                                                                                       Steps to
                                                                                                                                                                                                                         STARTING A SMALL

                                                                                                                     3. Strengths, Weaknesses, Opportunities, and                It. is. best. to. consult. a. marketing. resource. for.
                                                              services. which. may. displace. yours.
      Step 4         prepare a Marketing plan                 indirectly..For.example,.Pepsi TM.competes.
                                                                                                                        threats (SWOt)                                           more.detail.on.this.process..For.example,.if.your.
                                                                                                                   Examine. your. business. and. the. environment.     ,.
                                                              directly.with.other.carbonated.soft.drinks.                                                              action. items. may. include. lowering. price. and.
                                                              for. market. share.. Indirect. competition.
    products. or. services. to. consumers. and. should.                                                            business.plan.or.operation.and.threats.from.the.              increasing. promotion.. The. action. plan. should.
                                                              for.Pepsi TM. might.include.non-carbonated.
    include:                                                                                                       environment. and. then. document. your. ability. to.          answer. this. simple. question:. What. will. you. do.
                                                              drinks,. fruit. juice,. mineral. water. or. milk..
                                                                                                         ,.identify.strengths.            tomorrow?
                                                              Compare. your. own. proposed. operation.
     1. Introduction                                          to. your. competitors. and. describe. the. 
    Describe. the. product. or. service. highlighting. its.   relative. ease. or. difficulty. in. entering. the.       market.
    features..Identify.status.of.patent,.trademark.or.                                                               4. Objectives                                   Technological Environment                            Set.precise,.quantifiable.and.realistic.objectives.
                                                              Describe. the. role. of. technology. in. your.       for. your. business.. Instead. of. suggesting,. for.
     2. Situation Analysis                                    business. and. estimate. how. quickly.               instance,. that. you. will. increase. market. share.
    This. is. a. comprehensive. analysis. of. the.            it. might. become. obsolete.. How. will.             every. year,. state. an. objective.. For. example:. to.          technological. advancements. in. other.    
    and.should.include:                                       industries. affect. your. business. and. will.,
        The Market            Socio-Political Environment                          Setting. objectives. out. of. reach. will. do. little. but.
        are.aiming.your.product.or.service,.where.     .      How. responsive. will. your. firm. be. to.           damage. your. self-confidence.. Setting. objectives.
        they. live. and. what. benefits. they. seek..         emerging. trends. in. legislation. and.    
        Determine. the. total. number. of. potential.         changing. consumer. attitudes?. Describe.            activities.
        customers. in. your. market. area. and. the.          your. plan. for. maintaining. awareness. of.
        number. you. can. reasonably. expect. to.      .      new.laws.and.regulations.which.will.affect.           5. Strategy
        become.customers..Outline.the.potential.                                           Take.into.account.the.results.of.the.SWOT.section.
        growth. in. the. market. for. your. product. or.                                                 
        service.and.estimate.your.projected.growth.           Economic Environment                       
        in. market. share.. Market. share. may. be.    .      What. is. the. environment. in. which. your.
        based. on. total. dollar. sales. or. on. unit.        target. market. exists?. Is. the. economy. 
                                                              impact.sales?                                         6. Action plan
        Competitive Environment
        Identify. and. describe. your. direct. and.
        indirect. competitors.. Direct. competitors.
        will. sell. products. or. services. which. may.
                                                                                                                   areas. in. implementing. your. marketing. strategy..
8       substitute. directly. for. your. own.. Indirect.                                                                                                                                                                                   9
        competitors. will. market. products. or.
                                                                                                                                                                                                                            Steps to
                                                                                                                                                                                                                              STARTING A SMALL

                                                                                                                                                                                     A. partnership. is. an. agreement. in. which. two.
                                                                  and. at. times. when. cash. requirements.                              Choose a type of Business
       Step 5         Finance Your Business                       outpace. contributions. from. sales,. there.
                                                                                                                          Step 6         Organization
                                                                                                                                                                                     or. more. people. combine. their. resources. in.
                                                                                                                                                                                     a. business.. In. order. to. establish. the. terms. of.
                                                                                                                                   the. relationship. and. to. protect. partners. in. the.                                                                The. ownership. of. a. company. may. be. arranged.
                                                                  the. day-to-day. operating. needs.. In. this.                                                                      event. of. disagreement. or. dissolution. of. the.                                                               in.several.ways..In.the.province.of.Newfoundland.
                                                                  case,. businesses. may. acquire. working.                                                                          business,. a. partnership. agreement. should. be.
     for. a. building. and/or. leasehold. improvements,.                                                                and. Labrador,. these. are. sole. proprietorships,.
                                                                  capital. either. by. borrowing. money. for. a.                                                           
     licenses,. equipment,. legal. and. incorporation.                                                                  partnerships,
                                                                  short. time. at. fixed. interest. rates. and.                                                            
                                                                  repayment. schedules. or. by. establishing.                                                                        agreement.
     capital. for. rent,. utilities,. wages. and. salaries,.
                                                                                                                        Sole proprietorships
     benefits,.telephone.and.transportation.                                                                            This. is. the. simplest. way. to. set. up. a. business..
                                                                  institution.                                                                                                       In. a. general. partnership,. two. or. more. owners.
                                                                                                                        A. sole. proprietor. is. fully. responsible. for. all.                                                                debts. and. obligations. related. to. the. business..        share. the. management. of. the. business. and.        .
                                                                  Line of Credit                                                                                                     each. is. personally. liable. for. all. the. debts. and.                                                                   A. creditor. with. a. claim. against. a. sole. proprietor.
                                                                  A. line. of. credit. may. be. extended. to. a.                                                                     liabilities. of. the. business.. This. means. that.                                                                              would.normally.have.a.right.against.all.of.his.or.
                                                                                                                                    each. partner. is. responsible. and. must. assume.
                                                                                                                        her. assets,. whether. business. or. personal.. This.
                                                                  be. used. as. the. enterprise. sees. fit.. The.                                                                    the. consequences. of. the. actions. of. the. other.
     types of Business Financing                                  interest. on. a. line. of. credit. is. computed.
                                                                                                                        and. subject. to. federal. and. provincial. personal.
        Term Financing                                                                                           
        Term. financing. is. required. to. fund. the.          Other                                                    provincial.jurisdiction.                                     who. contribute. capital. only.. Limited. partners.
        purchase. of. business. assets. such. as.              In. addition. to. banks. and. other. financial.                                                                       do. not. contribute. to. the. management. of. the.
        equipment,.land.and.buildings..                        institutions,     Table 1: Sole Proprietorship Advantages                      business.and.are.personally.responsible.only.for.
                                                               you.can.access..These.include.personal.equity,.                   and Disadvantages.                        
        Equity Financing                                       family. and. friends. (usually. called. love. money),.        informal.investors.(called.angels),                                                                  A. limited. partnership. may. also. involve. general.             companies. (private. firms. that. invest. in. high.  .                                                                partners..They.are.fully.liable.for.the.debts.and.
        for. a. percentage. of. ownership. interest.           risk/high. return. ventures,. usually. by. acquiring.                                                       ,
        in. the. business. financed. without. any.             large. shares. of. the. business. and. providing.                                                                     to. a. greater. share. of. the. profits.. Partnerships.
        guaranteed.return,.but.with.the.opportunity.           management.assistance),,.equity.                                                                      also.come.under.provincial.jurisdiction.’s.profits.                     funding. from. its. many. sources,. shareholders.
        Working Capital
        Working. capital. is. money. needed. for.              An. Economic. Development. Officer. can. discuss.,.utilities,.               advice.. For. more. information. on. assistance.         partnerships
        capital. needs. are. funded. by. the. cash.            available. in. this. province,. contact. your. local.
        surplus. of. a. business.. During. startup,.           Innovation,
10                                                                                                                                                                                                                                              11
                                                                                                                                                                                                                      Steps to
                                                                                                                                                                                                                        STARTING A SMALL

     Table 2: Partnership Advantages and                     Federal. incorporation. involves. the. completion.         Table 3: Corporation Advantages and                                     Register Your
              Disadvantages.                                 and. filing. of. the. Articles. of. Incorporation,. and.            Disadvantages.                                  Step 7         Business Name
                                                             information. regarding. the. Registered. Office. and.
                                                             Board. of. Directors.. These. documents,. which.       .                                                           Before. registering. your. business. name,. you.
                                                   ,.                                                                  must. be. sure. that. no. other. firm. or. individual.
                                                                                                                      has. prior. rights. to. the. name.. Name. clearance.
                                                             must.also.submit.a.Newly.Upgraded.Automated.                                                                       is. conducted. by. the. Registry. of. Companies,.
                                                             Name. Search. (NUANS). system. report.. This.                                                                      Department.of.Government.Services,
                                                             report,                                                                59.Elizabeth.Avenue,.St..John’s..For.a.small.fee.
                                                             Articles. of. Incorporation,. must. be. dated. within.                                                   
                                                             corporation’s. kit.. Please. note,. all. forms. can. be.                                                           telephone,,.
                                                                                                                                                                                patenting Your Invention or Innovation
                                                             In. either. of. the. above. cases. we. recommend.   .                                                    
                                                                                                                      or. innovation,. you. should. consider. protecting.
     Corporations                                            fee.for.this.service.varies..Contact.information.for.                                                              it. with. a. patent.. Patentable. subject. matter.      both.the.Registry.of.Companies.and.Corporations.                                                                   includes.products,.compositions,.apparatuses.and.
     owners.–                                                                                   processes.. The. subject. matter. must. be. useful,.
     shareholder. has. limited. liability. meaning. that.
                                                        .                                                               Co-operatives                                           not. obvious. to. someone. in. the. field. and. not. a.                                                                  The. co-operative. is. another. form. of. business.     collection.of.other.known.devices.
     company. would. normally. have. no. rights. against.                                                       .
     its.shareholders.                                                                                                  are. incorporated. provincially. under. the.        .   Before.filing.a.patent.with.the.Canadian.Intellectual.
                                                                                                                     Property. Office,. an. agency. of. Industry. Canada,.
     Provincial. incorporation. involves. the. completion.                                                              make. sure. you. have. written. records. of. your.
     and.filing.of.the.Articles.of.Incorporation,.Notice.                                                           research.and.development..You.must.conduct.a.
     of. Registered. Office. and. Notice. of. Directors..                                                               limited.return.on.their.shares..Profits.are.returned.   patent. search,. which. the. Canadian. Intellectual.
     These.documents.are.available.from.the.Registry.                                                                  Property. Office. will. conduct. for. you,. based. on.
     of. Companies,. Department. of. Government.                                                                        makes. of. the. cooperative. through. products. or.     your. detailed. description. of.your. invention..This.
     Services,. and. must. be. accompanied. by. a. filing.                                                              services.sold.or.purchased.                             branch. will. also. provide. you. with. examples. of.                                                                                                                           state-of-the-art.patent.applications.
     on. the. Registry. of. Companies. website,.         .                                                              For. more. information. on. the. formation. of.  .                                                                                                  co-operatives,. contact. the. Newfoundland. and.
     If. a. company. intends. to. operate. solely. in.                                                                  information. on. the. Newfoundland. and. Labrador.
     Newfoundland.and.Labrador,                                                                   Federation. of. Co-operatives,. please. see. the.
12   to.incorporate.provincially..                                                                                      Appendix.
                                                                                                                                                                                                                              Steps to
                                                                                                                                                                                                                                STARTING A SMALL

                                                                                                                                                                                        tobacco tax
       A patent provides a degree of protection against                      Set Up Your Basic                                              Consider provincial
       unauthorized use of your invention or innovation.         Step 8      Bookkeeping System                              Step 9         taxation Issues
                                                                                                                                                                                        Tobacco. products. are. taxed. under. the. Tobacco.
       But infringements against the patent must be            Your. bookkeeping. system. is. a. tool. that. lets.                                                                      Tax. Act. and. various. permits. and. licenses. are.
       pursued by the patent holder. A registered patent       you. know. how. well. your. business. is. operating..       Retail Sales tax                                   
       may help in securing financing by providing             It. provides. the. information. that. is. needed. to..      The. Newfoundland. and. Labrador. Harmonized.                in.this.province.and.require.registration.with.the.
       credibility to your business idea. You may also         prepare. financial. statements,. to. submit. tax.    .      Sales.Tax.(HST)          Department.of.Finance.
       decide to sell the patent or license the production     returns,. to. apply. for. bank. loans. or. government.      of. various. goods. and. services. acquired. for. use.
       to somebody else for royalty payments.                  assistance. and. allows. you. to. make. sound.              in. this. province.. The. tax. is. imposed. under. the.      Health and post-secondary education tax
                                                               decisions. about. every. area. of. the. business..          Excise.Tax.Act.(Canada)              Employers.(a.person,.corporation,.partnership.or.
                                                               Unless. there. is. a. way. of. keeping. track. of.          the. federal. government.. Required. registrations.
     Alternatives. to. patenting. include. obtaining.          commitments,.income.and.expenses,                                                                            (wages. and. benefits. deemed. taxable. income.
                                                                                                                           are. issued. by. Revenue. Canada.. Information. on.
     a. trademark. on. the. name. or. copyrighting. the.                                                                           under.sections.5(1).or.6.or.7.of.the.Income.Tax.
                                                                                                                           required. federal. registrations. is. contained. in.
     rules.or.instructions..For.example,.the.continued.        on.needless.penalties.or.foregone.discounts.                                                                             Act)
                                                                                                                           Step.10..                                                                                                                                  are. required. to. register. with. the. Department. of.
     the. formula. but. on. the. exclusive. rights. to. the.                                                                       Finance. and. pay. the. appropriate. tax. once. the.
     words.Coca.ColaTM.and.CokeTM.                             don’t. have. the. skills. within. your. organization. to.                                                                remuneration. paid. exceeds. a. certain. amount..
                                                                                                                           Act. is. no. longer. required. by. a. business. selling.
                                                               set. up. a. bookkeeping. system.. You. can. contact.    .   goods. or. services. in. this. province.. However,.
     Information. on. patents,. trademarks. and.                                                                 
                                                                                                                           the. province. does. impose. a. sales. tax. upon.
     copyrighting. is. available. online. from. the.           friend. or. counsellor. to. get. the. system. started.                                                                   employer. is. associated. with. one. or. more. other.
                                                                                                                           premiums. paid-out. for. the. purchase. of. certain.
     Canadian. Intellectual. Property. Office. website,.                                                                         employers.
                                                                                                                           types. of. insurance. that. relate. to. the. insuring. of.,.telephone.and.fax.           in. one. of. the. many. courses. available. in. basic.      property,. risks. or. perils. in. this. province.. Thus,.
     numbers,.please.see.the.Appendix.                         bookkeeping. and. do-it-yourself. accounting.. You.                                                                      Provincial. taxation. laws. are. administered. by.
                                                                                                                           an. insurance. company,. agent. or. broker. selling.
                                                              the. Taxation. and. Fiscal. Policy. Branch. of. the.
     For. more. information,. contact. your. local.                                                                            Department. of. Finance.. Any. questions. about.
     Innovation,. Trade. and. Rural. Development. office.      one. of. the. commercially. available. bookkeeping.                                                            
                                                                                                                           Gasoline tax
     in.the.Appendix.                                                                                                                                                                   provincial Government tax Incentives
                                                                                                                           Gasoline. products. acquired. for. use. in. this.    .
                                                                                                                           province. are. subject. to. tax. under. the. Gasoline.
                                                                                                                                                                                .       The. Department. of. Finance. provides. a. number.
                                                                 The advice of a professional accountant will                                                                           of. tax. incentives. for. small. businesses.. Please.
                                                                 be extremely important in matters of taxation,            Tax. Act.. Thus,. any. business. selling. these.
                                                                                                                           products,,.  .       contact. the. Innovation,. Trade. and. Rural.
                                                                 financial planning, joint venture negotiations,
                                                                 financing, expansion and major capital asset              will. be. required. to. obtain. the. appropriate.            Development. office. nearest. you. to. speak.       .
                                                                 acquisition. If you plan to incorporate your              registration.from.the.Department.of.Finance..                with. an. Economic. Development. Officer. or.       .
                                                                 business, yearly financial statements will need                                                                        refer. to. the. Department. of. Finance. website,
                                                                 to be prepared by an accredited professional                                                                  Contact. information. for. the.
14                                                                                                                                                                                                                                                15
                                                                                                                                                                                                                          Steps to
                                                                                                                                                                                                                            STARTING A SMALL

                                                                payroll Deduction Account                               Businesses. who. must. register. or. who. register.
      Step 10 ConsiderIssues
                                                                Every. employer. requires. a. payroll. deductions.      voluntarily. for. GST/HST. are. called. registrants..      Step 11 Register with Your
                                                                               Registrants. collect. the. GST/HST. on. most. of.     .
     The.Canada.Revenue.Agency.(CRA).is.responsible.                                                                    their. sales. and. pay. the. GST/HST. on. most.           Most. businesses. operating. in. Newfoundland.         .. n	Deducting. income. tax,. Canada. Pension.          purchases. they. make. to. operate. the. business..       and. Labrador. must. pay. business. tax. to. the.
     the. delivery. of. economic. and. social. benefits.. It.    . . Plan.(CPP).contributions.and.Employment..          Registrants. can. claim. a. credit,. called. an. input.   municipality. in. which. they. are. located.. This. tax.
     also.administers.certain.provincial.and.territorial.                                                    .
                                                                 . . Insurance. (EI). premiums. from. amounts.          tax. credit,. to. recover. the. GST/HST. they. paid.
     tax. programs.. In. addition,. the. CRA. has. the.          . .                                 or. owe. on. their. business. purchases. for. use. in.    Therefore,.businesses.which.operate.from.rented.
     authority. to. enter. into. new. partnerships. with.                                                               commercial. activities. by. deducting. it. from. the.     premises. are. also. liable. for. business. tax.. As.  .
                                                                . n	Sending. in. these. amounts. and. the. CPP.         GST/HST. they. collected.. If. they. pay. more. than.
     the. provinces,. territories. and. other. government.      . . contributions. and. EI. premiums. that. they.
                                                                                                                .                                                       ,.                                                                     they.collect,.they.can.claim.a.refund.          
                                                                . .   .        . . throughout. the. year.. The. CRA. must.     .                                                       
     basis.                                                                                                             Registration                                              a.list.of.municipalities,.contact.the.Newfoundland.
                                                                . . receive. these. amounts. from. most.        .
                                                                . .,.    .                                                                 and. Labrador. Federation. of. Municipalities.. For.
     The. Canada. Revenue. Agency. has. implemented.                                                                    HST.if:                                                   contact.information.please.see.the.Appendix.
                                                                . . after. the. month. in. which. they. were.   .
     the. Business. Number. (BN). on. behalf. of. the.          . . deducted.and.more.frequently.from.large.    .
     federal. government.. The. BN. currently. includes.                                                                . n       To. register. your. business,. contact. your. town. or.
                                                                . . employers.                                          . . in. their. commercial. activities. in. Canada;                                                                     .. .                                            
     accounts:. corporate. income. tax,. import/export,.          . n	Reporting. all. these. amounts. on. an.           . n	Their. total. taxable. worldwide. revenues. 
     payroll. deductions. and. the. goods. and. services.        . .         . . (   .       proposed. location..You.
     tax/                         . . of.the.following.calendar.year.                    . . more. than. $30,000. in. the. immediately.    .
                                                                .                                                                                                                 permit.
                                                                                                                        . . preceding. four. consecutive. calendar.       .
     If. a. business. will. be. importing. commercial.          Corporate. accounts,. in. most. cases,. will. be.       . . quarters,.or
     shipments. from. a. foreign. country. or. exporting.                                                               ..                                                        Every. person. starting. a. business,. or. restarting.
     commercial. goods. to. other. countries,. it. should.                                                              . n	Their. total. taxable. worldwide. revenues.           after. a. period. of. inactivity,. should. advise. their.
     register. for. an. import/export. account.. The.                                                                   . . exceed. $30,000. in. a. single. calendar.             assessment. office. within. one. week,. giving. the.
     import/export. account. number. will. be. used. to.                                                                . . quarter.. Although. a. business. does. not.   .       date.of.commencement.and.the.address.of.the.
     process. customs. documents. and. should. be.                                                                      . .  .       business.. When. relocating. or. shutting. down. a.
     opened. before. importing. or. exporting. goods. in.                                                               . . worldwide. revenues. do. not. exceed.         .       business,
     order. to. avoid. delays. in. releasing. goods. at. the.                                                           . . $30,000,.it.can.register.voluntarily.                 as.plans.are.confirmed.
     border.                                                    and. Labrador,. Nova. Scotia. and. New. Brunswick..     For. businesses. and. self-employed. individuals.
                                                                The.HST.was.implemented.on.April.1,.1997.and.           with. inquiries. about. business. and. GST/HST.
                                                               registration,. payroll,. GST/HST,. excise. taxes. and.
                                                                                                                        other. levies,. excise. duties,. corporations,. sole.
                                                                Although.the.consumer.ultimately.pays.the.GST/          proprietorships. and. partnerships,. please. call.
                                                                HST,. generally. businesses. are. responsible. for.     1.800.959.5525.
16                                                              collecting. and. remitting. it. to. the. government..                                                                                                                         17
                                                                                                                                                                                           Steps to
                                                                                                                                                                                             STARTING A SMALL

                                                                                                                                                                Eastern Regional Office
     Step 12 Contact the Workplace Health, Safety
             and Compensation Commission                         Step 13 Insure Your Business                                            Appendix:
                                                                                                                                         Contact Information
     The.Workplace.Health,.Safety.and.Compensation.             There. is. a. wide. variety. of. insurance. products.      DepARtMeNt OF INNOVAtION, tRADe      t:.709.466.4174/4183
     Commission. (WHSCC). operates. a. work. injury.            tailored. to. the. needs. of. small. business.. These.     AND RURAL DeVeLOpMeNt                f:.709.466.1306
     insurance. program. which. provides. benefits. to.
     injured.workers.and.protects.employers.from.most.          fire,. theft. and. vandalism,. which. can. offset. a.      Corporate Office                     Marystown Field Office          potentially. serious. loss. of. buildings,. equipment.     Confederation.Building,.West.Block   215.Ville.Marie.Drive.
                                                                                                                            .                                     .
     The. system. is. funded. completely. by. employers.  .     will. insist. that. adequate. property. insurance. be.     St..John’s.NL.A1B.4J6..              Marystown,.NL.A0E.2M0
     in. the. province.. The. amount. an. employer. pays. .                          t:.709.729.7000.or.1.800.563.2299    t:.709.279.5531/5533
     to. the. WHSCC. varies. according. to. his/her.                                                                               f:.709.279.5536
     operation.. For. example,. the. higher. the. risk. of.
     injury,.the.higher.the.cost.of.coverage.                   For. example,. business. liability. insurance. will.       Avalon Regional Office               Central Regional Office
                                                                help. protect. business. operations. against. legal.       28.Pippy.Place                       230.Airport.Blvd..
     Most. companies. are. obliged. by. law. to. register.,.         St..John’s.NL..A1B.3X4.                .
     with. the. WHSCC. and. to. pay. assessments..          .   such. as. plate. glass. or. expensive. moulds,. may.       t:.709.729.7104/7112                 Gander,.NL.A1V.2N9,.whether.full.time,.       be. specifically. insured. against. loss. or. damage..     f:.709.729.7135                      t:.709.256.1484/1486
     part. time. or. casual,. you. must. register. with. the.   Business. interruption. insurance. guarantees.                                                  f:.709.256.1490
     WHSCC.. There. are. some. exceptions,. such. as.           income. during. downtime.. Plans. which. can.              Carbonear Field Office
     artists,. clergy. and. sport. professionals.. If. you.         Suite.102,.Croke.Building.           Baie Verte Field Office
     are. unsure. of. the. status. of. your. operation. call.   of. temporary. or. permanent. disability. are. widely.     21.Industrial.Crescent.              Barker.Building.           available..                                                Carbonear,.NL.A1Y.1A5                Highway.410
     required. to. have. compensation. coverage.. The.                                                                     t:.709.596.4116/4109                 P.O..Box.189
     only. time. an. employer. with. no. workers. must.      f:.709.596.8103                      Baie.Verte,.NL.A0K.1B0                                                    t:.709.532.4772
                                                                Ferryland Field Office               f:.709.532.4773
     If. you. fail. to. notify. the. WHSCC. when. you. start.   to. fund. buy/sell. agreements. among. principal.          Shamrock.Medical.Building.,          shareholders.. Proceeds. of. the. insurance. policy.       Ferryland,.NL.A0A.2H0.               Springdale Field Office         are. used. to. purchase. the. deceased. person’s.          t:.709.432.3019                      155.Little.Bay.Road.             shares. in. the. business. from. his. or. her. estate,.    f:.709.432.2651                        .
                                                                eliminating. the. possibility. of. those. shares.                                               Springdale,.NL.A0J.1T0
     Optional. coverage. is. available. for. owners. and.
                                                        .       passing. on. to. someone. unacceptable. to. the.           Placentia Field Office               t:.709.673.3481   .       surviving.shareholders.                                    1116-1120.Main.Street                f:.709.673.4542                                                                        .
     coverage. or. coverage. in. general,. contact. the..                                                                  Dunville,.NL.A0B.1S0
18                                                                                                t:.709.227.1350                                                                  19
                                                                                                                                                           Steps to
                                                                                                                                                             STARTING A SMALL

     Grand Falls-Windsor Field Office   Port Saunders Field Office           Postville Field Office                      Grand Falls-Windsor Office
     3.Cromer.Avenue                      .
                                        P.O..Box.159.                        c/o.Labrador.Regional.Office                4.Bayley.Street.
     Grand.Falls-Windsor,.NL.A2A.1W9.   Port.Saunders,.NL.A0K.4H0.           t:.709.896.2400                             Grand.Falls-Windsor,.NL.A2A.2T5
     t:.709.292.4450/4451               t:.709.861.3004/3096                 f:.709.896.0234                             t:.709.489.6600
     f:.709.292.4454                    f:.709.861.3251                                                                  f:.709.489.6620
                                                                             Canada Business Newfoundland and Labrador
     St. Alban’s Field Office           St. Anthony Field Office             90.O’Leary.Avenue.                          Corner Brook Office
     Resource.Centre.                     .
                                        P.O..Box.523.                          .
                                                                             P.O..Box.8687,.Station.A.                   Joseph.R..Smallwood.Building.
     P.O..Box.430.                      St..Anthony,.NL.A0K.4S0.             St..John’s,.NL.A1B.3T1.                     1.Regents.Square.
     St..Alban’s,.NL.A0H.2E0            t:.709.454.3508/3521                 t:.1.888.576.4444.or.709.772.6022           Corner.Brook,.NL.A2H.7K6
     t:.709.538.3796                    f:.709.454.3616                      f:.709.772.6090                             t:.709.637.4477
     f:.709.538.3479                                                                  f:.709.637.4483
                                        Labrador Regional Office
     Western Regional Office            2.Hillcrest.Road                     AtLANtIC CANADA OppORtUNItIeS AGeNCY.       Grand Bank Office
     2.Herald.Avenue.                     .
                                        P.O..Box.3014,.Station.B.                                                        2.Church.Street
       .                                Happy.Valley-Goose.Bay,.NL.A0P.1E0   Regional Office                               .
     Corner.Brook,.NL..A2H.6J8.         t:.709.896.2400                      John.Cabot.Building,.11th.Floor.            Grand.Bank,NL.A0E.1W0
     t:.709.637.2980/8024               f:.709.896.0234                      10.Barter’s.Hill.PO.Box.1060,.Station.C.    t:.709.832.2517
     f:.709.639.7713                                                         St..John’s,.NL.A1C.5M5                      f:.709.832.2309
                                        Charlottetown Field Office           t:.1.800.668.1010.or.709.772.2751
     Port aux Basques Field Office      P.O..Box.116.
                                          .                                  f:.709.772.2712.                            Labrador Office
     P.O..Box.430.                      Charlottetown,.NL.A0K.5Y0.                                 2.Hillcrest.Road.
     Port.aux.Basques,.NL.A0M.1C0.      t:.709.949.0378                                                                    .
     t:.709.695.9871                    f:.709.949.0382                      Clarenville Office                          Happy.Valley-Goose.Bay,.NL.A0P.1C0
     f:.709.695.5817                                                         58.D.Manitoba.Drive.                        t:.709.896.2648
                                        Forteau Field Office                 Clarenville,.NL.A5A.1K5.                    f:.709.896.2900
     Stephenville Field Office            .
                                        P.O..Box.144.                        t:.709.466.5980
     35.Carolina.Avenue,.Suite.111      Forteau,.NL.A0K.2P0.                 f:.709.466.5982                             CORpORAtIONS CANADA
     Stephenville,.NL.A2N.3P8           t:.709.931.2908
     t:.709.643.2600/1228               f:.709.931.2036                      Gander Office                               Enquiries.Unit.
     f:.709.643.4926                                                         109.Trans.Canada.Highway.                   Corporations.Canada
                                        Labrador City Field Office           Gander,.NL.A1V.1P6.                         9th.Floor,.Jean.Edmonds.Tower.South
     Deer Lake Field Office             118.Humphrey.Road.                   t:.709.651.4457                             Ottawa,.ON.K1A.0C8
     44.Trans.Canada.Highway            Bruno.Plaza.                         f:.709.256.4080                             t:.1.866.333.5556
     P.O..Box.279                       Labrador.City,.NL.A2V.2J8                                                        f:.613.941.0601
     Deer.Lake,.NL.A8A.3M1.             t:.709.944.4046                                                        
     t:.709.635.2613                    f:.709.944.4008
20   f:.709.635.5103
                                                                                                                                                                                Steps to
                                                                                                                                                                                  STARTING A SMALL

     CANADA ReVeNUe AGeNCY                           Clarenville               Marystown          CANADIAN INteLLeCtUAL                       Grand Falls-Windsor Office
                                                     t:.709.466.4060           t:.709.279.0837    pROpeRtY OFFICe                             26.High.Street.
     Newfoundland.and.Labrador.Tax.Services.Office   f:.709.466.4070                                                                            .
     Sir.Humphrey.Gilbert.Building.                                            Port aux Basques   1575.Brunswick.Street                       Grand.Falls-Windsor,.NL.A2A.2P7
     165.Duckworth.Street.                           Corner Brook.             t:.709.695.2835    Halifax,.NS.B3J.2G1                         t:.1.800.563.3448.or.709.489.1600
     P.O..Box.12075.                                 t:.709.637.2204           f:.709.695.2393    t:.1.888.576.4444                           f:.709.489.1616
     St..John’s,.NL.A1B.4R5                          f:.709.637.2681                              f:.902.426.6530
     t:.1.800.959.5525                                                         St. Anthony                              Corner Brook Office
     f:.709.754.5928                                 Gander.                   t:.709.454.8833                                                2.Herald.Avenue,.Suite.201B                              t:.709.256.1420           f:.709.454.3206    NeWFOUNDLAND AND LABRADOR FeDeRAtION OF       .
                                                     f:.709.256.1438                              CO-OpeRAtIVeS                               Corner.Brook,.NL.A2H.6E6
     DepARtMeNt OF GOVeRNMeNt SeRVICeS                                         Springdale                                                     t:.1.800.563.2772.or.709.637.2700
                                                     Grand Bank.               t:.709.673.4218    19.Crosbie.Place,.Suite.203                 f:.709.639.1018
     Registry of Companies                           t:.709.832.1672           f:.709.673.4232      .
     Commercial.Registrations.Division.              f:.709.832.1792                              St..John’s,.NL.A1B.4B7.                     NAtIONAL ReSeARCH COUNCIL OF CANADA
     59.Elisabeth.Avenue                                                       Stephenville       t:.1.877.726.9431
     P.O..Box.8700                                   Grand Falls-Windsor.      t:.709.643.8650    f:.709.726.9433                             Industrial Research Assistance Program
     St..John’s,.NL.A1B.4J6                          t:.709.292.4206           f:.709.643.8654
     t:.709.729.3317                                 f:.709.292.4149                                                                          St. John’s Office
     f:.709.729.0232                                                                              MUNICIpALItIeS NeWFOUNDLAND AND LABRADOR    c/o.NRC.Institute.of.Ocean.Technology                                Happy Valley-Goose Bay.                                                                  Arctic.Avenue
                                                     t:.709.896.5428                              460.Torbay.Road                             Memorial.University.of.Newfoundland.
     Government Service Centres Division             f:.709.896.4340                              St..John’s,.NL.A1A.5J3.                       .
     P.O..Box.8700                                                                                t:.1.800.440.6536.                          St..John’s,.NL.A1B.3T5
     St..John’s,.NL.A1B.4J6                          Harbour Grace.                               f:.709.738.0071                             t:.1.877.994.4727
                                                     t:.709.945.3107                                        f:.709.772.5067
     Government Service Centres                      f:.709.945.3114
     Regional Locations                                                                           WORKpLACe HeALtH, SAFetY AND COMpeNSAtION   Corner Brook Office
                                                     Labrador City.                               COMMISSION                                   .
     St. John’s.                                     t:.709.944.5282                                                                          Corner.Brook,.NL.A2H.6J8
     t:.709.729.3699                                 f:.709.944.5630                              146-148.Forest.Road.                        t:.1.877.994.4727
     f:.709.729.2071                                                                                .
                                                     Lewisporte                                   St..John’s,.NL.A1A.3B8.                     Gander Office
                                                     t:.709.535.0262                              t:.1.800.563.9000.or.709.778.1000           Fraser.Mall,.230.Airport.Blvd..
                                                     f:.709.535.0284                              f:.709.738.1714                              .
22                                                                                                                                                                                               23
     Happy Valley-Goose Bay Office



     Income and Financial Services

     Avalon Region

     Central Region

     Western Region

     Labrador Region
     Employment Supports and Services


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