Next steps after incorporation Posted on Sep 16, 2019
You have INCORPORATED your business. What are your next steps? Checklist below.
Open programs with CRA.
You need a business number to operate. Upon incorporation, you have received articles of incorporation with corporate number. This is different from a business number which is like a company SIN and is required to pay corporate taxes.
HST program – you might need to register for HST. Don’t rush to register too early though. If you are a small business that is providing goods and services to non-business clients (individuals), registering for HST will make your service/product more expensive. You do not have to register until you reach out a threshold of sales.
You might significantly benefit from selecting a quick method for HST. If you never heard about it, contact me and I will be happy to explain.
Select year end for your business –fiscal year end can’t be longer than 371 days so unless you want a specific year end, the date of incorporation will drive the year end usually and will be the end of the month prior to incorporation month.
Money earned by the corporation cannot simply be taken out from a corporate account and used for personal purposes. We need to discuss how you are going to take the money out – dividend or a salary. Then a CRA program needs to be opened accordingly. Do not take out money until you speak with an accountant.
Open a corporate bank account –It is very advisable to segregate business income and expenses in a separate bank account. The moment you incorporate, open an account for your business and obtain a business credit and debit card.
Keep track of your expenses. Refer to my other tax tips article on this topic.
Mark your calendar with important deadlines. The deadlines are somewhat far from incorporation date so good to mark them now so you don’t miss them. If I helped you to incorporate, I keep track of the deadlines as well so won’t let you miss them.