4 Essential Steps to becoming a Responsible Business Owner
BREAKING NEWS, running a small business isn’t just working from home and earning income. It comes with a large responsibility and an unwavering commitment to integrity.
Before you read on, know that I don’t shame you for jumping feet first into running a business and missing a million steps you’ve never heard of.
I’m here to give you the information you need to get back on track.
1.Filing for your Businesses Identity
How you choose to run your business is up to you. Regardless of the route you take (Sole Proprietor, Incorporation, or Partnership), you’ll need to check with both your CITY and PROVINCE (or State for my American Citizens). Paperwork may be required, legal trade names filed for, and licenses to operate.
If you’re in Alberta, head here for information on registering a business name.
https://www.alberta.ca/register-business-name.aspx
If you’re in Calgary, head here for information on acquiring your business license.
(Photographers- look under Information & Media on the Calgary site for your rules)
2.Tracking Income & Expenses
I’m so over hearing “well I didn’t know I had to keep track of it” or worse “I didn’t know I had to tell the government about it”. You need to be tracking every dollar down to the penny as well as all money out with expenses. The biggest thing here you need to remember is DOCUMENTATION. Credit cards/Bank Statements don’t cut it in Canada. You need invoices and receipts for proof of purchase/items.
I recommend using an app like receipt bank or wave for expenses and QuickBooks now that I’m incorporated!
3.Purchasing Business Insurance
There is far too much in life out of our control to not have insurance, not to mention operating/working in some places is down right illegal without liability insurance. You should have liability insurance, coverage for all acts of god scenarios, and look into business interruption, equipment breakdown, auto insurance, etc.
4.Filing & Paying Taxes
The number one thing I hear is something along the lines of, well it’s just a hobby or I didn’t know I needed to claim my income. Hobby or not, the moment you take money for a product or service you’re a business in the eyes of the government. So before you’re being questioned, audited or worse locked up for tax evasion. File your damn taxes, pay your taxes, and keep things legal and legit!
Now that you’ve got the breakdown, I encourage you to take a week and get your business back on track.
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