Legal basics checklist
Starting up your own business is an exciting journey, but when it comes to dealing with legal and government regulations, you could end up feeling a bit lost.
Updated 
6 min. read
Have no fear! Whether your company will be just you working out of your basement or a corporation with a staff of 50, there’s some legal stuff nearly everyone has to take care of when you’re starting out. The checklist below outlines the main things you’ll need to take care of before hanging up the open-for-business sign.
As for additional regulations, permits and licenses you’ll need, that will depend on a number of factors, such as: your industry; where you’re conducting business; how many employees you’ll have; etc. A good time to look up these requirements is when you’re writing your business plan.
1. Choose your business structure
There are four types of business structures your new venture can have: sole proprietorship; partnership; corporation; and co-operative. Each one has varying levels of legal complexity and paperwork associated with it. Study the advantages and responsibilities of each to decide which business structure works best for you.
2. Incorporate your business
If you decide your business will be a corporation, you can choose to incorporate federally or provincially. While each province and territory will have its own set of requirements, to incorporate at the federal level, follow this five-step process:
- choose a name for your corporation
- complete the articles of incorporation
- establish a registered office address and board of directors
- file the required forms and paying fees
- receive your certificate of incorporation
Each of the steps above has various requirements and tasks to complete. Visit the Government of Canada website to get all the details on how to incorporate federally.
3. Register your business
No matter which business structure you pick, you’ll need to register your business in every province and territory you intend to operate (in some cases, sole proprietorships running under the name of the business owner don’t need to register but check your provincial requirements for full details).
Since you’ll need to register in each place where you intend to conduct business, check out the provincial and territorial requirements.
4. Set up G S T/H S T account
Do you need a G S T/H S T number? Most businesses do when they start up, but there are exceptions so it’s important to see if your business requires one. Get the most up-to-date information on whether you need a GST/HST account and how to register.
If you do get a G S T/H S T number, you can enrol in B M O’s convenient Tax Payment and Filing Service.
5. Take care of your taxes
Now that you have your G S T/H S T account, what’s next? You’ll need to know about what other taxes you may have to pay, along with how and when to pay them. Plus, you should learn how to keep accurate financial records and how to qualify for tax credits. Whether you do it all yourself or hire an accountant to help, make sure you brush up on your tax basics.
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