STARTING A SMALL
Table of Contents
STEP 1.. Assess.Yourself:.Do.You.Have.What.it.Takes?...............................................3
STEP 2.. Identify.a.Business.Opportunity. ..................................................................5
STEP 3.. Improve.Your.Chances.by.Preparing.a.Business.Plan. ....................................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,
STEP 13.. Insure.Your.Business. ...............................................................................18.
This. handbook. is. designed. as. a. guide. only.. While. every. effort. has. been. made. to. ensure. the. accuracy.
the. information. contained. herein.. . For. precise. business. or. legal. advice,. including. an. understanding. of.
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’re.thinking.about.starting.a.small.business.. . succeed?
owning.a.small.business.and.did.not.know.where. work style in rural Newfoundland and Labrador. It.could.be.one.of.the.most.important.decisions.
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’ll.ever.make..Before.you.proceed,.you.should. . you.for.your.chosen.field.of.business?
what.basic.steps.are.necessary.to.start.or.own.a. . no new premises to buy or rent. Hours are flexible consider. the. steps. involved. in. launching. your.
business,.the.planning.you.need.to.do.and.the. and new business ideas can be tested on a small own. business.. This. publication. is. designed. to. o Has. your. work. experience. exposed. you.
kind.of.personality.you.need.. scale. It is often a way to learn about business with help.you.through.the.process.. . .
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 After.reading.this.handbook.you.will.have.a.better.
o Are. you. ready. for. long. hours. of. research,.
to 40 per cent of all employment. Even large idea.of.the.steps.necessary.to.start.a.business.. . . planning.and.hard.work?
corporations depend on the services and products the.chance.to.earn.an.income.that.is.limited.only.
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.. . solve.problems.and.do.you.see.problems.as. .
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 Are.you.able.to.set.reasonable.short.and.long-
the. effort. involved. in. starting. and. operating. a.
bring. to. business. are. just. as. important. as. department’s. website. at. www.gov.nl.ca/intrd.. . . .
term. goals. and. then. follow. through?. Do. you.
intelligence. and. education.. Successful. business. Additional.contact.information.can.also.be.found. . regularly.set.objectives.and.then.evaluate.and. .
people. tend. to. be. hard-working,. confident,. in.the.Appendix. . adjust.to.meet.them?
and. your. finances.. In. addition,. many. small. busi-
optimistic,. self-driven. people. who. are. able. . nesses.fail.within.the.first.three.years,.and.many.
to. overcome. obstacles.. Some. post-secondary.
o Can. you. identify,. evaluate,. and. manage.
require.several.years.to.return.the.entrepreneur’s. . .
education. can. help,. but. it’s. not. essential.. . original.investment..That’s.the.bad.news.. . a.business?
Perhaps. the. single. most. important. quality. to.
succeed. in. business. is. a. desire. to. work. for. The. good. news. is. that. small. business. . o Can.you.determine.the.effect.of.various.risks.
yourself.and.succeed.. ownership. offers. you. financial. and. decision- . on.your.business?
While.you.can.learn.a.great.deal.about.business. you. gain. job. security. and. the. opportunity. to.
o Are. you. willing. to. take. risk. and. can
subjects.in.school,.it’s.no.substitute.for.becoming. .. 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 Can.you.accept.failure.as.part.of.the.learning.
out. of. their. homes. and. gradually. acquire. their. Do.you.have.what.it.takes.to.start.a.business?. . . 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 and.operate.a.business. 3
STARTING A SMALL
o Can.you.identify.and.use.all.of.the.resources. o Will.you.need.to.meet.other.legal.requirements?. . n Your. local. Chamber. of. Commerce. or. Board.
Identify a Business
. at.your.disposal? Step 2 Opportunity
. . of.Trade.may.have.compiled.a.list.of.business.
If. you. answered. all. these. questions. positively. . . opportunities.in.your.area.
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. idea..This.idea.may.be.your.own.or.may.be.drawn. . . of. business. information. centres. that. are. .
. affairs.of.your.business? practical.terms,.however,.few.would-be.business. from.a.number.of.available.resources,.including: . . located. in. every. province. and. territory.. .
o Will. you. deal. effectively. with. competition?. people.succeed.in.answering.all.these.questions.. . . They.provide.access.to.books.(free.of.charge. .
. 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. .
. business..How.will.you.deal.with.them? the.questions.with.which.you.had.difficulty. . . business.as.well.as.online.access.to.hundreds. .
. n Business.magazines.and.newspapers.which.
o Can.you.handle.uncertainty.and.a.constantly. . . often. contain. business. success. stories,.. . . of.databases.and.tools..Contact.information. .
You.should.now.have.a.better.understanding.of. . . for. the. Canada. Business. Newfoundland.
. changing.business.climate? your.ability.to.start.a.successful.small.business.. . . how-to. information. for. would-be. small. .
. . business.owners.and.lists.of.startup.as.well.
. . 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. . . as.business.purchase.opportunities.
. 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.
. n Radio,.television.and.the.internet.
o Are. you. willing. to. prepare. or. assist. in.
. preparing. a. business. plan. which. details. . . n Trends.in.population,.consumer.or.corporate.
. every.aspect.of.your.proposed.enterprise? . . buying.behaviour,.government.legislation.and..
. . other.trends.related.to.your.business.sector..
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. . . . studies.and.reports.on.business.trends.and. .
. relations,. advertising,. banking,. selling,. . . opportunities.
. pricing,. insurance. and. employee. .
. relations?. What. other. special. skills. will.
. . n Universities,. trade. schools. and. other.
. you.need? .
. . research.centres.for.opportunities.to.acquire.
. . 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.
STARTING A SMALL
Highlight. the. competitive. advantages. of. your. your.distribution.strategy?.Who.is.the.competition. 6. Required Investment
Step 3 prepare a Business plan business. over. others. in. the. field.. If. the. plan. and.how.do.you.propose.to.deal.with.them?.What. . 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 Pay.particular.attention.to.long-term.capital.costs.
2. the Market 3. Management
produce and sell my goods and services in volume versus.operating.costs.(working.capital).
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 new.product.is.of.little.use.if.there.is.no.market. . key. employees. and. managers. with. individual. be. possible. to. further. analyze. your. proposed.
product? for.it..Occasionally,.companies.must.create.a.new. . resumes. where. possible.. Include. any. special. operations..Market.research.should.provide.you.
market,. particularly. in. emerging. technologies,. . skills.that.will.help.make.the.business.a.success.. with.a.range.of.prices.that.consumers.will.accept..
In.Step.1,.you.learned.whether.you.had.the.personal. but. this. takes. deep. pockets.. Generally,. it. is. Analysis. of. your. costs. will. help. you. determine.
skills,.abilities.and.drive.to.start.a.business..You. cheaper.and.easier.to.enter.existing.markets. 4. Manufacturing or Delivery process the. cost. of. producing. the. product. or. service..
must.now.evaluate.your.business.idea.. 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.
The.most.effective.way.to.organize.your.thoughts. 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,.sources.of.supply,.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. production.or.delivery.process. 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,.including.books.that.may.be.borrowed.by.
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. (information.on.patents.is.found.in.Step.7). balance.sheet,.income.statement.and.cash.flow.
business. plan. elements. described. below.. The. statement.for.the.first.three.years.with.the.first.
elements.do.not.have.to.be.completed.in.order. 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.
Your.business.plan.should.include.the.following: growing. or. shrinking.. Consider. your. competitive. projections.as.well.as.a.statement.of.the.cost.to.
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.
at. a. niche,. up-market. group. or. will. you. mass.
of. opportunity. your. business. represents.. Avoid.
produce. inexpensively. for. a. larger. market?. Are.
6 your.key.markets.local.or.export?.What.will.be. 7
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. strategy.includes.expanding.market.penetration,.
A.marketing.plan.is.an.action.plan.for.moving.your. around.you.carefully..Identify.weaknesses.in.your. 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..
Compare. your. own. proposed. operation.
1. Introduction to. your. competitors. and. describe. the. in.your.firm.and.opportunities.presented.to.it.and.
Describe. the. product. or. service. highlighting. its. relative. ease. or. difficulty. in. entering. the. describe.how.you.might.exploit.them.
features..Identify.status.of.patent,.trademark.or. 4. Objectives
other.legal.protection. 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.
environment.in.which.you.propose.to.do.business. technological. advancements. in. other. capture.five.per.cent.of.the.total.market.by.number.
and.should.include: industries. affect. your. business. and. will. of.units.sold.in.year.one,.seven.per.cent.in.year.
Describe.the.type.of.customer.to.whom.you. 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. correctly.will.guide.your.choice.of.strategies.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. your.business. Take.into.account.the.results.of.the.SWOT.section.
growth. in. the. market. for. your. product. or. and.select.a.marketing.strategy.to.achieve.your.
service.and.estimate.your.projected.growth. Economic Environment objectives..There.are.many.marketing.strategies.
in. market. share.. Market. share. may. be. . What. is. the. environment. in. which. your. to.choose.from.such.as.new.market.penetration.
based. on. total. dollar. sales. or. on. unit. target. market. exists?. Is. the. economy. and.expanding.market.share..
impact.sales? 6. Action plan
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.
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.
may.not.be.enough.cash.on.hand.to.cover. the. relationship. and. to. protect. partners. in. the.
Preparing.a.business.plan.will.identify.the.amount. The. ownership. of. a. company. may. be. arranged.
the. day-to-day. operating. needs.. In. this. event. of. disagreement. or. dissolution. of. the.
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. written.with.the.assistance.of.a.lawyer..Partners.
licenses,. equipment,. legal. and. incorporation. partnerships,.corporations.and.co-operatives.
short. time. at. fixed. interest. rates. and. share.in.the.profits.according.to.the.terms.of.the.
repayment. schedules. or. by. establishing. agreement.
capital. for. rent,. utilities,. wages. and. salaries,.
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.
You.will.require.the.services.of.a.bank.to.provide. 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.
for.cheques.and.deposits.and.to.keep.a.separate. 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.
company.representing.a.sum.of.money.to. 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 income.taxes..This.type.of.business.comes.under. A.limited.partnership.may.involve.limited.partners.
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,.there.may.be.other.sources.of.funding. Table 1: Sole Proprietorship Advantages business.and.are.personally.responsible.only.for.
you.can.access..These.include.personal.equity,. and Disadvantages. the.amount.of.capital.they.have.contributed.
Equity Financing family. and. friends. (usually. called. love. money),.
Equity.financing.is.the.provision.of.funds.for. informal.investors.(called.angels),.venture.capital. A. limited. partnership. may. also. involve. general.
capital.or.operating.expenses.in.exchange. 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. obligations.of.the.business,.but.may.be.entitled.
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),.supplier.credit,.equity. also.come.under.provincial.jurisdiction.
to.share.in.the.company’s.profits. funding. from. its. many. sources,. shareholders.
Working. capital. is. money. needed. for. An. Economic. Development. Officer. can. discuss.
wages.and.office.supplies..Many.working. 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,.Trade.and.Rural.Development.office.
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.
are.available.in.a.kit.from.Corporations.Canada,. must. be. sure. that. no. other. firm. or. individual.
must.be.accompanied.by.a.filing.fee..Applicants. 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,.located.in.
Articles. of. Incorporation,. must. be. dated. within. you.can.reserve.a.name.for.up.to.90.days.(the.
corporation’s. kit.. Please. note,. all. forms. can. be. telephone,.fax.number.and.website.information,.
patenting Your Invention or Innovation
In. either. of. the. above. cases. we. recommend. . If.your.new.business.is.to.be.based.on.an.invention.
that.you.get.the.assistance.of.a.lawyer.and.the. or. innovation,. you. should. consider. protecting.
Corporations fee.for.this.service.varies..Contact.information.for. it. with. a. patent.. Patentable. subject. matter.
A.corporation.is.a.legal.entity.separate.from.its. both.the.Registry.of.Companies.and.Corporations. includes.products,.compositions,.apparatuses.and.
owners.–.the.shareholders.of.the.company..Each. Canada.is.found.in.the.Appendix. 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.
a.creditor.with.claims.against.the.assets.of.the. The. co-operative. is. another. form. of. business. collection.of.other.known.devices.
company. would. normally. have. no. rights. against. organization.found.in.the.province..Co-operatives. .
its.shareholders. are. incorporated. provincially. under. the. . Before.filing.a.patent.with.the.Canadian.Intellectual.
Co-operatives.Act..Co-operatives.are.financed.by. Property. Office,. an. agency. of. Industry. Canada,.
Provincial. incorporation. involves. the. completion. the.purchase.of.shares.by.members.who.receive. make. sure. you. have. written. records. of. your.
and.filing.of.the.Articles.of.Incorporation,.Notice. a.vote.on.the.operation.of.the.co-operative.and.a. 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. to.members.in.proportion.to.the.use.the.member. 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.
on. the. Registry. of. Companies. website,. . For. more. information. on. the. formation. of. .
www.gs.gov.nl.ca. co-operatives,. contact. the. Newfoundland. and.
If. a. company. intends. to. operate. solely. in. information. on. the. Newfoundland. and. Labrador.
Newfoundland.and.Labrador,.it.may.be.preferable. Federation. of. Co-operatives,. please. see. the.
12 to.incorporate.provincially.. Appendix.
STARTING A SMALL
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 required.by.a.business.selling.tobacco.products.
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).is.a.single.tax.rate.for.the.sales. 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).and.is.administered.by. Employers.(a.person,.corporation,.partnership.or.
Unless. there. is. a. way. of. keeping. track. of. the. federal. government.. Required. registrations. other.type.of.legal.entity).who.pay.remuneration.
Alternatives. to. patenting. include. obtaining. commitments,.income.and.expenses,.there.is.a. (wages. and. benefits. deemed. taxable. income.
are. issued. by. Revenue. Canada.. Information. on.
a. trademark. on. the. name. or. copyrighting. the. good.chance.money.will.disappear.or.be.wasted. 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).to.their.employees.working.in.this.province.
success.of.Coca.ColaTM.is.based.not.on.patenting. are. required. to. register. with. the. Department. of.
the. formula. but. on. the. exclusive. rights. to. the. There.are.several.alternatives.to.help.you.if.you. 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,. The.salary.deduction.allowed.must.be.shared.with.
Information. on. patents,. trademarks. and. an.accountant.or.enlist.the.help.of.an.experienced. each.employer.in.the.associated.group.where.the.
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,. and.show.you.how.to.maintain.it..You.can.enroll. employers.
types. of. insurance. that. relate. to. the. insuring. of.
www.cipo.gc.ca..For.address,.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.
can.contract.a.bookkeeping.service.to.update.your. contracts.of.insurance.will.be.required.to.register. the. Taxation. and. Fiscal. Policy. Branch. of. the.
For. more. information,. contact. your. local. records.on.a.regular.basis.or.you.can.purchase. Department. of. Finance.. Any. questions. about.
Innovation,. Trade. and. Rural. Development. office. one. of. the. commercially. available. bookkeeping. these.laws.may.be.directed.to.the.branch.at.the.
or.the.National.Research.Council.office..Contact. software.programs.for.use.on.a.computer. contact.information.in.the.Appendix.
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,.either.at.the.wholesale.or.retail.level,. . 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 www.fin.gov.nl.ca.. Contact. information. for. the.
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
account.and.is.responsible.for: 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.
for.the.administration.of.tax.programs.as.well.as. .. 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.
. . Insurance. (EI). premiums. from. amounts. tax. credit,. to. recover. the. GST/HST. they. paid. is.in.addition.to.any.commercial.property.taxes..
tax. programs.. In. addition,. the. CRA. has. the. . . paid.to.employees. 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.
bodies.to.administer.non-harmonized.taxes.and. they.collect,.they.can.claim.a.refund. it.is.very.important.to.get.the.correct.information.
. . have.to.pay.on.behalf.of.their.employees. .
other.services.at.their.request.on.a.cost-recovery. . . throughout. the. year.. The. CRA. must. . from.your.municipal.assessment.office..To.obtain.
basis. Registration a.list.of.municipalities,.contact.the.Newfoundland.
. . receive. these. amounts. from. most. . Businesses.have.to.register.for.and.charge.GST/
. . employers.by.the.15th.day.of.the.month,. . 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 They.sell.or.provide.taxable.goods.or.services. To. register. your. business,. contact. your. town. or.
. . employers. . . in. their. commercial. activities. in. Canada;
the.four.major.Canada.Revenue.Agency.business. .. . city.council..They.will.first.review.your.proposal.to.
accounts:. corporate. income. tax,. import/export,. . n Reporting. all. these. amounts. on. an. . n Their. total. taxable. worldwide. revenues. determine.whether.or.not.you.can.operate.in.your.
payroll. deductions. and. the. goods. and. services. . . information.return.by.the.end.of.February. . . (including.those.of.their.associates).were. . proposed. location..You. then.have.to.go.through.
tax/harmonized.sales.tax.(GST/HST). . . of.the.following.calendar.year. . . more. than. $30,000. in. the. immediately. . an.application.process.and.receive.an.occupancy.
. . 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. . . have.to.register.for.GST/HST.if.its.taxable. . business.. When. relocating. or. shutting. down. a.
opened. before. importing. or. exporting. goods. in. . . worldwide. revenues. do. not. exceed. . business,.inform.the.assessment.office.as.soon.
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.
has.the.same.basic.operating.rules.as.the.GST.. 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
STARTING A SMALL
Eastern Regional Office
Step 12 Contact the Workplace Health, Safety
and Compensation Commission Step 13 Insure Your Business Appendix:
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. include.the.standard.insurance.policies.covering.
injured.workers.and.protects.employers.from.most. fire,. theft. and. vandalism,. which. can. offset. a. Corporate Office Marystown Field Office
law.suits.by.injured.workers.or.their.dependents. 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. . carried.as.a.condition.of.a.loan. t:.709.729.7000.or.1.800.563.2299 t:.709.279.5531/5533
to. the. WHSCC. varies. according. to. his/her. www.gov.nl.ca/intrd f:.709.279.5536
operation.. For. example,. the. higher. the. risk. of. Specialized.types.of.insurance.are.also.available..
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. action..Certain.important.assets.of.the.business,. 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
If.you.hire.one.or.more.workers,.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. guarantee.a.level.of.personal.income.in.the.event. 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.
the.WHSCC.and.they.will.let.you.know.if.you.are. 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. Life.insurance.on.key.individuals.in.an.organization. f:.709.596.8103 Baie.Verte,.NL.A0K.1B0
register.is.if.the.company.is.incorporated. minimizes.the.impact.on.the.business.in.the.event. t:.709.532.4772
of.death..Insurance.coverage.is.often.structured. 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.
your.business,.you.will.be.liable.for.assessment. shareholders.. Proceeds. of. the. insurance. policy. Ferryland,.NL.A0A.2H0. Springdale Field Office
and.penalty.charges.and.you.may.be.liable.for.the. are. used. to. purchase. the. deceased. person’s. t:.709.432.3019 155.Little.Bay.Road.
cost.of.any.injuries.suffered.by.your.workers. 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
partners.of.non-incorporated.businesses..If.you. . surviving.shareholders. 1116-1120.Main.Street f:.709.673.4542
coverage. or. coverage. in. general,. contact. the.. Dunville,.NL.A0B.1S0
18 WHSCC.office.near.you. t:.709.227.1350 19
STARTING A SMALL
Grand Falls-Windsor Field Office Port Saunders Field Office Postville Field Office Grand Falls-Windsor Office
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
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 www.canadabusiness.ca/nl. f:.709.637.4483
Labrador Regional Office
Western Regional Office 2.Hillcrest.Road AtLANtIC CANADA OppORtUNItIeS AGeNCY. Grand Bank Office
. 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. www.acoa.ca. 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 .
35.Carolina.Avenue,.Suite.111 Forteau,.NL.A0K.2P0. f:.709.466.5982 CORpORAtIONS CANADA
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 www.corporationscanada.ic.gc.ca.
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 www.cipo.gc.ca Corner Brook Office
f:.709.754.5928 Gander. t:.709.454.8833 2.Herald.Avenue,.Suite.201B
www.cra-arc.gc.ca. 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 www.nlfc.coop.
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
www.gs.gov.nl.ca 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 www.municipalitiesnl.com 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
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 .
Happy Valley-Goose Bay Office
DepARtMeNt OF HUMAN ReSOURCeS,
LABOUR AND eMpLOYMeNt
Income and Financial Services
Employment Supports and Services