If you’re thinking about starting a sole proprietorship, there’s a few things you should do. Below, we’ll be going through them, so read on ahead.
Know If It’s Right for You
Becoming a sole proprietor is a huge leap. Not only would you be making your hobby into a business, you could make or lose a lot of money.
Yes, you could lose a lot of money. Remember that you’re not legally separate from your business. If anything were to happen to it, you’d be liable. This means your belongings would be seized by the bank or credit union to get whatever you owe them. This is especially true for any property or vehicles that are under your possession.
Speak to A Business Development Centre
Depending on where you live, there are probably enough and more development centres. You should reach out to them as they’ll help you create your sole proprietorship. They’ll tell you everything you have to do to get the job done as quickly and legally as possible.
Unfortunately for you, you may not have a development centre near you. This is fine as you could go to one a few towns away.
Figure Out Your Taxes
Sole proprietors don’t have to pay as many taxes as their counterparts. That being said, this depends on the location of your business. This is why speaking to a business development centre is the best thing you could do. They’d help you figure out which taxes you have to pay, including things like GST. Thankfully, you can register for them online and easily figure how to work out GST on calculator through guides.
Choose A Name
You need to choose a name for yourself. How else would anyone find you? This is an important step for any business type.
What’s more, the name you choose would affect whether you’d need to file a DBA or not. If the business isn’t just your name, or have your name in it, the DBA would let the government know that you’re the one running it.
Although this seems like a pain, if you don’t do this, you’ll be in a bit of trouble.
Register Your Business
With that out of the way, you need to register your business. This would transform you from someone with just a hobby to someone who runs a company. Unfortunately, registering your business can be a hassle. You’ll have to pay a sum to get the license which can be very expensive depending on where you live.
Thankfully, registering for a sole proprietorship is easier than other business types.
Are You Hiring Any Employees?
If you’re hiring employees, you need to create Employee Identification numbers. As a sole proprietor, you’re most likely going to work by yourself. So, you don’t have to do this.
As you see, a multitude of things have to be done if you’re thinking about starting a sole proprietorship. With that said and done, we covered everything you should know. So, what do you think?