Legal Requirements: Checklist for Starting Your Business
Register Your Business
When you operate your business under a name other than your own, you need to register that name because you will require proof of business registration to open bank accounts, apply for loans, and many other business start-up and business building activities.
Business registration is a two-step process:
1. Submit your business name request. The first step in registering your business is the approval of your business name by submitting your name request either online at B.C. Registry Services or in person at Small Business BC.
Name approval prevents the use of names that are so similar as to confuse or mislead people, and it provides a record allowing the public to determine ownership of the company. Names are checked against the list of registered corporations in British Columbia to ensure there is no duplication. Under the Partnership Act, proprietorship or partnership (firm) names are not protected, meaning there could be multiple companies with the same name.
Note: If you operate under your own personal name as a sole proprietor (self-employed person or independent contractor), you do not have to register your business. You can simply go ahead and register for Provincial Sales Tax (PST) and Goods and Services Tax (GST) accounts as applicable (refer to our Tax Requirements-Starting section for information on how to do this), and for your municipal business licence. In this case, the legal name of your business is your personal name.
2. Register your business. Once you have been notified that your business name has been approved, you have 56 calendar days to register your business name or complete your incorporation process.
If you do choose to register as a sole proprietorship or partnership, there are three options:
- Online at the OneStop Business Registry
- In person at Small Business BC
- By mail to the B.C. Corporate Registry
To register as a corporation, there are two options:
- Self-incorporation online at Corporate Online
- Incorporation through a lawyer. If you need a lawyer, you may wish to contact the Lawyer Referral Service.
To register as a society, there are two options:
- Refer to the B.C. Corporate Registry website to form a provincial society.
- Refer to the Corporations Canada website to form a federal society.
If you have any questions about whether or not to incorporate as a society, you should consult a lawyer and/or an accountant.
To register as a co-operative, refer to the B.C. Corporate Registry website.
Since co-operatives are developed through consensus and members must have a say in major decisions on the democratic principle of "one member, one vote", they can be more complex to set up and to operate than traditional businesses. For more information about co-operatives, refer to the Canadian Co-operative Association (BC Region) website.
If you have any questions about whether or not to incorporate as a cooperative, you should consult a lawyer and/or an accountant.
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See All ProductsSmall Business BC offers a multitude of resources to help you start your business.
- You can register for our Start Smart Level 1 seminar in which you learn the basic legal requirements to start a small business in British Columbia.
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You can schedule a meeting with one of our business advisors for guidance regarding the requirements for your particular business.
Know When it's Best to Use a Lawyer
When acquiring a business. Seek legal advice before you sign anything or make any commitments. At the very least, consult with a lawyer for 1-2 hours to learn about the buying process and how a lawyer can help minimize your risks and liabilities.
When choosing a business structure. Know your options and understand the advantages and disadvantages of each. Learning about the differences from both a legal and accounting/tax perspective is the best place to start.
When changing business structures. Identify the tax consequences of changing from one structure to another (e.g. transactional and income taxes). Don’t be surprised to learn that taxes apply to a transaction regardless of whether or not the recipient pays anything.
When incorporating a company. Avoid incorporating on your own unless you use a reputable self-help resource. In B.C., if all you do is enter information on a government website and pay with a credit card, then you have not properly incorporated.
When partnering with others. Clearly set out your rights, duties, obligations and restrictions as an owner, and appropriate exit strategies in a written agreement (e.g. a partnership agreement or shareholders agreement).
When investing in a business. Conduct financial and legal due diligence before investing in a business. Proper legal due diligence can reveal otherwise unknown liabilities of the business that could change your risk assessment of the investment.
When leasing real estate. Make sure your intended use of the premises is permitted under applicable zoning, and take the time to read and understand your rights, duties, obligations, and liabilities as a tenant under the lease before signing.
When hiring employees. Put the employment arrangement in writing. Clearly set out the key terms of employment (e.g. duties, compensation, and benefits) and the right to terminate, including how much prior notice must be given. Consider including non-disclosure, non-compete, and non-solicitation restrictions and an assignment of intellectual property rights.
When obtaining liability insurance. Speak to an insurance advisor regarding liability coverage that will protect both your business and personal assets. Also, if you have a corporation, don’t assume your personal assets are protected from all types of liabilities.
When choosing a lawyer. The best way to choose a lawyer to use is to get a referral. If you can’t get a referral from someone you trust, you can contact the Canadian Bar Association's Lawyer Referral Service.
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