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.