Explaining By-laws and Planning Processes for Establishing a Business

Every municipality throughout the country has certain steps and rules that must be obeyed when opening a business. Lanark and Renfrew County are no exception. So, if you want to open a business of your own, you need to know the local rules, so you don’t shut down. 

Basic first steps of opening any business in Ontario 

• Conduct Market Research. This may mean anything from a simple talk with friends to an in-depth economic survey. But before you invest any time and effort, you want to ensure that the market is ready to embrace your product and services. 

• Prepare a business plan. Though your business plan could be as basic as scribbling notes on a napkin, it is probably best to have a properly written business plan. Many templates are available online  that can help you refocus your business goals. Just pick the one that most speaks to you. 

• Decide on the ownership structure. In Ontario, you can choose between four types of business structures. They each serve a different legal and tax need. There are sole proprietorships, partnerships, corporations and co-operatives.  

• Register your business online. If your business has employees, offices or facilities, you must register it using the Ontario Business Registry. You start by searching the Ontario Business Registry to see if your business name is available, create a ONe-key account, log in and register for a ServiceOntario account  and log into the account to register your business. Fees for this will range from $60 to $300. 

• Check if you need licences and permits and see if there are available grants or funding opportunities. Some businesses require special permissions to open. BizPal is a free online tool that tells you which permits you need. You may also need to check on your municipality’s requirements. Also, it would be best if you always looked for any available grants or funding opportunities. The government of Ontario provides budding entrepreneurs with a list of opportunities, but there are countless other ways to find funding.  

• Confirm if you need to charge HST. Nothing in life is certain but death and taxes. But if your business makes less than $30,000 gross over four consecutive calendar quarters, you may not have to charge GST/HST. Information on taxing your clients can be found on Canada Revenue Agency. Regardless of your obligations, you may still want to charge it. 

• Understand your tax obligation. You will have to pay taxes on your income. There is no avoiding this. Even if your business can avoid charging HST and you make very little your first year, you will have to report your income to the government. Tax credits may be available  to help ease any financial burden. But you should consider employing a tax expert at that time of year. 

• Understand Workers’ rights. If you have any employees, you must be aware of their rights and ensure they are safe while at work. If you break the law by infringing workers’ rights, it may cost you everything. So stay informed. 

Those are the basics of opening a business in Ontario. 

What are the considerations that you must take locally? 

Most municipalities have an economic development officer on staff to help business owners navigate the difficult world of by-laws. You may have to look at the county level if you live in a very small community. For extra help, you can even contact both. Because these economic development officers are always on hand to remove any blockades, cut through the red tape and help you make the best of your business. Some considerations that they may help you explore include: 

• Zoning and by-law restrictions. Depending on where you live, you may be forbidden from opening a business within your own home. Or, if you are allowed, there may be rules that prevent you from doing things such as putting up signs. Most towns are happy, however, to let you have a small business within your home. However, if you want to build a new building, you will have to make sure that the piece of property is zoned commercial, or you may be hit with huge fines and ultimately have to destroy it. So before starting anything or investing too much money, please contact your local economic development officer first. 

• Permits and licences. Through Bizpal, you can get a view of the federal and provincial permits and licences. But you may need ones specific to your municipality. That economic development officer will be there for you to guide you. The regulations should also be found on your municipality’s website.   

• Chamber of Commerce or Business Improvement Area (BIA). Some different groups and organizations can help your business thrive. Chamber of Commerce and BIAs are an incredible resource and will support your efforts.