Business Development Services 1 What are the rules & regulations for your business? Session 7

Business Development Services 2  What are some key pieces of research that show your business may be feasible?  Are there any “red flags” (warning signs) that show your business may not be feasible? Feasibility check

Business Development Services 3  Explore rules and regulations common to all businesses  Introduce other guidelines to help protect small businesses  Research rules and regulations for your business Session objectives

Business Development Services 4 Bob was hired to build his neighbour’s deck. When the work was done, his neighbour complained that the deck was too close to the property line. He asked if Bob had taken out a permit for the deck. He hadn’t done this. What could go wrong? Bob’s contracting

Business Development Services 5 Shanda has been in business for about 1 ½ years. Over the past year, her cupcake shop has grown quickly to over $60,000 in sales. She registered to collect GST, but hasn’t filed a return yet, since she has spent the cash, and can’t send the money. What could go wrong? Shanda’s Cupcakes

Business Development Services 6  Guidelines and laws that you must follow in your business.  Many rules and regulations are set by the government, and your business can get into trouble if you don’t follow them  Some apply to all businesses  Some businesses/industries have special rules & regulations Definition: rules & regulations

Business Development Services 7  Group activity:  Sole proprietorship  Partnership  Corporation  Co-operative (co-op)  Social enterprise Rule # 1: Business structure

Business Development Services 8  On your flipchart  Write key points about this business structure  Think of an example of this structure you’ve seen in the community Activity

Business Development Services 9  PROs: simple and cheap to start for small businesses.  CONs: owner is responsible for all debts and damages, and if the owner dies, so does the business.There may be higher tax rates than other structures. Sole proprietorship

Business Development Services 10  PROs: Faster and cheaper to set up than a corporation or co-operative. Owners can combine their skills and talents.  CONs: Conflict between partners can destroy the business (get a lawyer to help you develop a partnership agreement). Partners are responsible for all debts and damages, and for the actions of other partners. Partnerships

Business Development Services 11  PROs: Lower tax rates. Because the corporation is “separate”, the owners are only partly responsible for debts or legal problems of the business. Corporations can last forever.  CONs: More expensive and complicated to set up. If you are setting up a corporation, it’s a good idea to get legal advice. Corporation

Business Development Services 12  PROs: There may be tax benefits for members. As a corporation, the co-op is treated as a “separate person” from the members. Co-op businesses help build a stronger community, and often last longer than other types of business. Co-operative (co-op)

Business Development Services 13  CONs: Can be more expensive and complicated to set up. Be sure to get legal advice. Usually requires a lot of training and special skills (board of directors and members) to govern a co-op and develop bylaws. Trouble (conflict) between members can cause problems for the co-op. Co-op (cont’d)

Business Development Services 14  Not a formal business structure but is important for Community Economic Development  Often owned by non-profit corporations  PROs: Social enterprises can make money for their non-profit “home” organization. They are good for the community, and can be inspiring places to work. Social enterprise

Business Development Services 15  CONs: The business could fail if the original idea doesn’t work out. They are more complicated to set up, and it’s a good idea to get legal advice. Social enterprise (cont’d)

Business Development Services 16  Name search first, then registration  Needed to get a business number, open a business bank account, and collect GST  90 day limit to register  Companies Office Rule # 2: Business name registration

Business Development Services 17  GST, PST  City of Winnipeg taxes  Employee income taxes (withholding & remittances)  Customs duties and excise tax  Corporate income tax  Personal income tax Rule # 3: Taxes

Business Development Services 18  Depends on type of business  BizPal is a great resource  Rule # 4: Licenses and permits

Business Development Services 19  Mandatory Employment Related Costs  MERCs  Employment Insurance (EI)  Canada Pension Plan (CPP)  Income tax remittances  Vacation pay  Employment standards, safety  Workers Compensation Rule # 5: Employees

Business Development Services 20  What type of business do you have? Do you know the rules and regulations that apply to your industry?  Some industries have rules and regulations that are specific to that industry (e.g. food service/preparation, healthcare, financial and insurance providers). Rule # 6: Know the rules for YOUR business

Business Development Services 21  Insurance  Liability, vehicle, property and contents, WCB, etc.  Legal advice  Contracts, leases, rental agreements, insurance, etc. Other guidelines