Starting a Small Business in New Brunswick (NB)

Starting a new business venture can be a very exciting, yet overwhelming task. Once you have decided you are ready to start the process, the following task list may be of some help. 

1. If you do not currently have one, find a qualified public practice accountant. There are three professional accounting designations in Canada and New Brunswick. Make sure your accountant is a professionally designated accountant in good standing. The three are

• Certified General Accountant (CGA)
• Chartered Accountant (CA)
• Certified Management Accountant (CMA)

Regardless of the designation, you will want to find an accountant that you can connect with and build a long term relationship.  Your accountant will become an integral part of your business and life. Make sure you can at least tolerate each other.  It also helps if they are up on the new trends of social media and internet marketing.  An accountant should be someone that helps with more than just taxes and accounting, they should also be able to help with growth plans and other business development. Therefore, their understanding in the changing trends of today’s business is imperative. Check out their website, Facebook page, LinkedIn, Twitter, ect. 

2. Decide on the type of business you would like to operate

              a. Sole proprietorship 

                             i. Operate as an individual and taxed as an individual. 

                             ii. No protection from creditors

                             iii.Least expensive to set up and operate

                             iv.May have tax disadvantages

              b. Partnership 

                             i. Two or more owners

                             ii. Income divided according to partnership agreement and taxed as individual

                             iii.May be liable for partners actions and debt

                             iv. Less tax advantages

               c. Corporation

                             i. One or more owners

                             ii. Private or public

                             iii.Separate legal entity

                             iv.Limited liability

                             v. Tax advantages

                             vi.Tax planning opportunities

                             vii.Most costly to setup and maintain

3. Prepare a Business Plan – having a well laid out business plan, including a marketing plan, can be a huge benefit especially if you are looking for financing.  There are many basic templates available on the internet, but the strength of a successful business plan is in the details and professional judgment. Typically, if you require a business plan, it would be worth the investment to have a professional accountant assist with the process to ensure it is realistic, accurate and objective. 

4. Register your Business

               a. Choose a name- select a variety of potential names for your business and prioritize by order                               of preference

               b. Get name search done and secure name (NUANS)

               c. Register your name and business with the province of New Brunswick. This also gives you a business number with Canada Revenue Agency.

5. Register for Sales Tax - Depending on the jurisdictions you will do business in, register for the appropriate sales tax

              a.  Harmonized Sales Tax (HST) and Goods and Services Tax (GST)(Federal) -NB,NS, NFLD, ONT, BC. The number is a federal number and can be used for HST and GST together.

              b. Provincial Sales Tax (PST) – Manitoba, Saskatchewan, Prince Edward Island – this is a provincial tax and must be registered with the province in which you are doing business.

              c. Quebec Sales Tax(QST) – Register with the province of Quebec if doing business in Quebec

6. Register for Payroll – If you are employing at least one person, you must register for payroll with the federal government and/or the province of Quebec if employees in Quebec. 

7. Select Accounting System- Depending on your type of business, you may find it easier with an industry specific software package that caters to your particular needs. Most small businesses use an off the shelf software package which is fairly inexpensive. For example, QuickBooks or Sage Simply Accounting are both user friendly and can be purchased for around $300. Most accountants use these packages so collaborating with your accountant provides for seamless integration.

As overwhelming as it may seem, taking the process one step at a time and having a trusted advisor, enables you to focus on the business operations and frees your mind to creativity. Best of luck in your new business venture, it is a rewarding experience for the right entrepreneur. 

Gerard Jones, CGA

Principal, CG Jones CGA

Gerard is an experienced accountant located in Rothesay, just outside Saint John, NB. He established CG Jones CGA in 2011 to offer expert services in Tax, Finance, Project Management and Consulting. His intention is to provide these expert services, usually affordable only to large corporations, to small and medium businesses as well as Professionals and business owners at rates more in line to what this group can manage. Gerard is just a call or email away if you would like to discuss ways your firm can look at tax savings, finance options, or project management needs. He can be reached at (506) 849-0913 or cgj@jonescga.com. Visit www.jonescga.com