Ready to bring your entrepreneurial dreams to life? Before you kick-off your business and officially launch your start-up, there are a couple of things you need to do to ensure you’ve covered your accounting.
Let’s take a look at them in this blog.
Name & Register Your Start-Up
The first thing you need to do is officially name and register your business. For this, you’ll first have to submit a name reservation request. Once you’ve gained legal approval for the business name you’ve chosen, you can then register your start-up.
This is also the stage where you determine the legal structure of your business. Is your start-up an incorporated company, are you a sole proprietor, or do you have a business partnership? The legal structure of your business will affect your annual tax returns, income reporting, as well as your liabilities. Make sure you’re filling out this detail correctly to avoid any legal issues down the line.
Acquire a CRA Business Number
Next up, it’s time to get your Canada Revenue Agency (CRA) business number. This will allow you to set up your CRA payroll as well as your GST sales tax accounts. Your business number is a unique, 9-digit number that’s used to identify your business. Your CRA business will include two letters and four digits attached to the business number.
Having obtained your CRA business number, you can now proceed with more accounting-specific tasks.
Open a Business Account
Now that your business is officially registered and you have a business number, you can open your own business account. It’s important to make a separate business account, even if you’re a sole proprietor, to avoid disorganized accounting records or other issues pertaining to cash flow. It’ll also help you track your business income and expenses more easily and effectively at year-end.
Apply for a Business Credit Card
You’ll also need a dedicated credit card solely for your start-up. A business credit card will help you earn loyalty points, receive cash back, and get rewards, in addition to helping you with your business transactions.