After taking the big leap of incorporating your business and wading through the questions that come with that, you might be left wondering what to do next. Often, business owners have just as many questions after as they did before. It’s always important to keep your business legal so make sure to follow these steps after you’ve incorporated.
- Obtain a Business Number from the CRA
A business number is how the government keeps track of your business. The CRA will main you’re an official business number but if you need it right away you can always call them at 1-800-959-5525.
- Determine if a HST number is required
A HST number is required for businesses that earn over $30,000 annually. You can register for a number by calling the CRA at 1-800-959-5525.
- Open a Corporate Bank Account
A separate corporate bank account is important to running a legal corporation. It’s required in order to receive cheques or pay yourself and employees.
- Track all Business Income and Expenses
Keeping track of all income and expenses for your business, whether you’re incorporated or not, is vital. Talk to your accountant on the best way to keep track of all your financial data and in determining what receipts need to be kept and for how long.
- Determine How to Pay Yourself
There are two main options to paying yourself from your incorporated business, salary or dividends. You accountant should be able to advise you on which is best for your situation.
- File Corporate Tax and HST Returns
Corporate taxes have to be filed annually, just like personal ones. HST returns on the other hand are filed based on selected frequency, usually either annually or quarterly.
- Obtain Required Business Licenses and Permits
Certain businesses or industries may be required to obtain certain licenses or permits. Even if you are a registered corporation you might not legally be allowed to operate without certain licenses and permits.
It’s always a good idea to research online and contact your accountant to make sure you are meeting all the legal requirements for your newly incorporated business. Follow these tips and guidelines and you’ll be on the right track.