Starting Your Own Business

An entrepreneur calls on us to help him carefully build his business from the ground up

In 2011, client made a bold leap, and went out on his own as an engineering consultant. He’d attracted two promising contracts, and wanted to try his hand as an entrepreneur. He had multiple questions about what seemed like an overwhelming process. Meeting regularly over the period of a month, we handled them all.

Sole proprietorship, or incorporate right off the bat?

If you have your own business, you know this question well. There are many differences between the two, but when it comes to taxes, sole proprietorships include all of your earnings in your year-end personal tax returns, whereas incorporating allows you to leave any excess earnings in your business, where they’ll be subject to a much lower tax rate. So when does it make sense to incorporate? Based on client’s projected earnings, and other factors, we advised him to incorporate.

What’s the best banking structure?

Client was going to be doing international business and wanted to be careful about setting up his banking accounts. We connected him to a trusted advisor at and internationally renowned banking organization, and helped him explain his needs for his business.

How does GST work, and how do I get set up to file?

This is where we started to really step in. We set up a GST account with the CRA directly, as a representative of client.

We also provided advice on GST collection, ITC and other GST related information that applied to the client.

What do I do about bookkeeping, payroll, and other administrative tasks?

After creating client’s books, we offered to either continue his bookkeeping ourselves, or train him and his wife on some easy-to-use accounting software to help them manage it themselves. They opted to keep us on hand for the first year, so client could focus on what he does best – engineering. Today, client’s wife has stepped back from working full time and is managing much more of the accounting and management of the business.

Client’s business is flourishing, and we remain on hand to support him with whatever he needs.

Our advice to incorporate from the beginning has also paid off – for the past years client has paid considerably less tax than in prior years.

Have a million questions about setting up your business? Come in for a complimentary consultation.