Getting a business Licence

[Weapon_R]

I want to get a business licence but I do not want to run a business. It sounds weird but I want to secure the name for a business idea.

Can anyone forsee any problems with me doing this? The business would not post any profits or losses. Would this affect my taxes at all?

Any input on this?

[benyl]

You have to do a Nuans report to see if the name exists already.

What you are talking about is not a business License, but incorporation.

Go down to the registry near you, they can set you up with the paper work. You still have to do a corporate return every year.

[Z_Fan]

Sure.

You don't actually need a business license to register trade names and/or incorporate.

You also do not need to name your business when you create a corporation. (Assuming you are looking at a limited liability company you can just start with a numbered company - all companies are actually numbered companies that are operating with trade names) Therefore, if it is the name that you wish to protect you can do so by performing a search at a local registry - then once you have done that - and determined if the name you wish is available, you can register that trade name. If you decide later you like a different name, you can register that name too! Bottom line, you can register as many trade names as you'd like. The name of the search, which is about $40 I believe, is a NUANS search and you must do one before you can register a trade name and apply it to your LTD.

If you incorporate your business (later) and then begin to operate with the trade name you registered, the company itself [revenues & expenses] does not affect your personal taxes...and you will require a Bank account set up in your companies name at that time. If you pay yourself from the company, then ofcourse you will be required to pay taxes etc and it will affect your personal tax. Even if you are the only individual on the companies payroll, it is still a wise plan to set up a payroll account so that the company is responsible for collecting and remitting taxes at source. This will prevent you from a BIG surprise at the end of the year when you file and realize you owe thousands of dollars.

If you will be billing more than $30k per year, or you bill more than $30k in any quarter, you will be required to register for a GST number.

Anyhow, the reality is that businesses are supposed to be valid only if operating with reasonable expectation of profit. But there is nothing wrong at all with getting the foundation down, doing nothing with the company for a few years, and then starting it for real.

The first thing you should do is the NUANS search to see if the name you want is even available.

[Weapon_R]

Thansk guys.

Z_fan - I entirely intend on operating in full force but as a student at this time, I do not have the time or energy to run anything whatsoever.

I simply want to incorporate a business to give myself 2-3 years of time to start "laying the foundation" as you say and guarantee the name for the future, as it would suck for it to be gone.

Do I still have to pay any extra taxes and such if the company does not bill at all?

I was originally confused - I thought that a business license and incorporation were the same thing.

If I understand it right, I can incorporate a business as a number, and then do a NUANS search to find out if a specific trademark name has been taken. If it is not, then I can apply that trademark to the number I have?

If that is correct, I guess the first step is incorporating a number. How do I do this?

[Z_Fan]

That is correct.

You do not need a business license to incorporate.

You do not need a trade name to incorporate.

You do not need to do a NUANS search to incorporate.

Essentially you go to any Registry (same place you go to for automobiles) and you want to acquire a numbered company. You pay the fee and you will get your company which is named 123456 Alberta Ltd. until such a time that you do a NUANS search, acquire a trade name and then register that trade name to your numbered company.

Hope that helps.

[Z_Fan]

Ah, you do not have to pay any extra in taxes just because your company didn't do anything...

You do have to file an annual return for your company though. Whether or not the company made money or not...you gotta file.

[3G]

what kinda company u openin?

[googe]

also, you dont need a business license to run a business, you only need one if you have customers/clients on the premises. something like consulting doesnt require a business license.

[Weapon_R]

Don't you need to incorporate to consult?

[googe]

no, you never NEED to incorporate a business. you can operate as a sole proprieter without incorporating. you claim it all on your personal tax return.

[Rav4Guy]

SP and partnerships = unlimited liability. Anything happens... owner(s) gets the :whipped:

[benyl]

If you have nothing, they can't sue you for it.

Just make sure you get the right insurance if you do start consulting without a numbered company. Even with a numbered company, if you run it too close to your personal transactions (i.e. buy youself stuff at the same time as your campany on the same account) they can go after your personal assets.

[sabad66]

I have my own consulting company and the only thing I had to do was register my trade name and get a home business permit to give to the bank to open a business account. Cost about 70 bucks in total. But I didn't do a search for the name so I may be sued at some point.

[sillyd]

My advice would be not to incorporate. Register the business as a sole proprietorship, it's cheaper and you avoid the annual report. All you need to do to hold the name at this point is to do the search and register the name.

[GirlsOnFire]

I registered a tradename for my home business this year. Went to the Registry at North Hill Mall and it took about 5 minutes and $40. I set it up as a sole proprietorship, registered for a GST number, and opened a bank account - I thought it was going to be a lot more complicated but it was really easy.

[Weapon_R]

Originally posted by sillyd
My advice would be not to incorporate. Register the business as a sole proprietorship, it's cheaper and you avoid the annual report. All you need to do to hold the name at this point is to do the search and register the name.



Originally posted by GirlsOnFire
I registered a tradename for my home business this year. Went to the Registry at North Hill Mall and it took about 5 minutes and $40. I set it up as a sole proprietorship, registered for a GST number, and opened a bank account - I thought it was going to be a lot more complicated but it was really easy.

Thanks guys, this sounds like exactly what I want to do.