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New Business Setup Checklist (Canada)

Everything to set up before you take your first dollar — in the right order.

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Before You Open (Legal & Structure)

Choose your business structure (sole prop, partnership, corporation, etc.)
Register your business name with your province (or federally)
Apply for a Business Number (BN) from the CRA (free, ~10 minutes online)
Get any required municipal licenses or permits

Money Basics

Open a dedicated business bank account
Open a business credit card (separate from personal)
Choose a bookkeeping method (cash vs. accrual)
Set up a simple chart of accounts

Get Paid & Track Spending

Choose an invoicing tool or template
Set your payment terms (Net 15/30, deposits, late fees)
Set up a system to track receipts and expenses
Decide how often you'll reconcile your bank account

Stay Compliant

Register for GST/HST once you expect to exceed $30,000 in revenue
Calendar your CRA instalment due dates
Set aside a % of every payment for taxes (25–30% is a safe start)

Frequently Asked Questions

When do I need to register for GST/HST?

Once your revenue exceeds $30,000 over four consecutive calendar quarters, registration becomes mandatory. You can register voluntarily earlier if you want to claim input tax credits.

Do I need a Business Number if I'm a sole proprietor?

A BN isn't automatically required for a basic sole proprietorship, but you'll need one as soon as you register for GST/HST, payroll, or incorporate.

How much should I set aside for taxes?

25-30% of every payment is a safe starting estimate for most small businesses, though your actual rate depends on your income level, province, and structure.

Is this checklist different in the US?

Yes — see the US version of this checklist, which covers EIN registration and state-level sales tax instead of CRA and GST/HST.

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