How To Start a Company in BC
Starting a small business in British Columbia is an exciting opportunity to join a thriving community of entrepreneurs. With over half a million small businesses contributing to more than half of the province’s private sector employment, BC offers a fertile ground for innovation and growth.
If you’re ready to take the plunge into entrepreneurship, this 10-step guide will walk you through the essential stages of launching your business, from selecting the right structure to securing funding and meeting legal requirements. Let’s explore how you can turn your vision into reality and create a strong foundation for success.
1. Make Sure Running a Small Business is Right for You
Our guide to starting a business begins with this vital question: is running a business right for you?
Getting a business off the ground takes the right combination of ideas, time, commitment, personality, and basic skills. To run a successful business, you will need to invest in everything from marketing ( SEO, Paid Ads, Print & more) to inventory to physical space and people.
2. Understand the Different Business Structures
Most small businesses in British Columbia operate under one of the following structures:
Sole Proprietorship (the owner/operator or self-employed)
General Partnership (involving one or more partners)
Corporation (also known as a limited liability company)
BC Registry Services also offers a comprehensive guide on the different structures and how to register them. If you’re considering federal incorporation later in your business journey, refer to Corporation Canada’s Guide to Federal Incorporation.
Need help figuring out which business structure is the best for you? Review this guide by the BDC for assistance.
3. Develop a Business Plan
A business plan is a successful start-up’s most important foundational building block. Not only will it help you secure start-up financing, but it’ll also serve as an invaluable roadmap for launching and growing your business.
Need help drafting your business plan?
Here at SearchYVR we can help you review your business plan.
4. Secure Financing
Getting your business off the ground can be a capital-intensive process. You need enough funding to cover your start-up costs and daily operating expenses for at least three months, if not more. Entrepreneurs often turn to family, friends, or their own personal lines of credit to negotiate this period.
Here are some other outside sources of funding you may qualify for:
Canada Small Business Financing Program
This program makes it easier for small businesses to get loans from financial institutions. It works by sharing the risk between the Government of Canada and the borrower. In doing so, it lowers the barrier to entry for many loans.
Futurpreneur Canada
This program provides youth ages 18-39 with start-up financing and mentorship to sustain successful businesses.
WE-BC
WE-BC offers business loans of up to $150,000 to women in BC who own a business or are thinking of starting or buying one.
Community Futures
Community Futures also offers financing geared at start-up businesses. The qualifying terms for this financing vary depending on where you’re based in the province. Check with your local Community Futures office for more information.
BDC
BDC is the only Canadian bank devoted exclusively to entrepreneurs. They offer a robust range of financing options for businesses of all sizes in all industries.
5. Choose the Right Name
Choosing the right name for your business can be daunting. If you want to use a business name that differs from your own, it must be approved by and registered with BC Registry Services.
Your business name must have a distinctive and descriptive element. It must also have a corporate designation such as “Ltd.” if you plan to incorporate. Here’s a guide that can help you get started.
Once your name is approved, it will be reserved for 56 calendar days, during which you must register your business.
6. Register Your Business
If your business is a sole proprietorship or general partnership, the Province of BC has made registering through the BC Registry easy. But if you’re looking to incorporate, you must file an Incorporation Application.
7. Secure Your Online Presence
Once you’ve secured your name, it’s time to secure your online presence. Even if you plan to use them later on, securing social media handles for your business is vital.
Here’s a guide on how to choose a domain name.
8. Register for Provincial Sales Tax
Provincial Sales Tax (PST) is a retail sales tax that applies when a taxable good or service is purchased, acquired, or brought into British Columbia. You may be required to register with the Ministry of Finance to charge and collect PST.
9. Register for Goods and Services Tax
If you sell goods and services in Canada and your annual worldwide GST taxable sales, including those of any associates, are more than $30,000, you may be required to register for Goods and Services Tax (GST). To register online with the Canada Revenue Agency (CRA), visit the BC Registry.
10. Complete Other Registrations
You may have to complete other registrations, depending on your type of business.
WorkSafeBC
If you plan to hire employees or establish your new business as a corporation, you’ll need to register with WorkSafeBC and pay their premiums. This ensures that you and your employees are covered in case of workplace injury or disease.
If you’re self-employed, you can also apply for their Personal Optional Protection.
Canada Revenue Agency
If you are hiring employees and paying salary, bonuses, vacation pay, or tips, you’ll need to register with the CRA for a payroll deduction account. This allows you to make the required income tax, Canada Pension Plan (CPP), and Employment Insurance (EI) payments.
Importing and Exporting
If you’re going to import or export goods, you’ll need to register with the Canada Border Services Agency (CBSA).
Restaurant Liquor License
If you have a restaurant and will be serving alcohol, you must apply for a liquor license.
SearchYVR is Here to Help
Starting a business in British Columbia is an exciting journey that requires careful planning and execution. With over half a million small businesses thriving in the province, BC offers a supportive ecosystem for entrepreneurs ready to take the plunge.
By following this 10-step guide, you’ll gain a clear understanding of the essential steps, from choosing the right business structure to securing financing and meeting legal obligations. Whether you’re just exploring the idea or ready to make your dream a reality, resources and support like those highlighted here can make your path to success more achievable. Your entrepreneurial adventure starts today—take the first step and make your vision a reality!