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Ontario|Business LawCorporations 228 Government regulations Every business must comply with various Federal, Provincial and Municipal Government Regulations. These laws concern business licences, tax collection, keeping records of your business transactions, and regulations about employees. Corporations also have administrative requirements such as keeping minute books and holding annual meetings.
- Business licence
Regardless of whether you conduct business from a commercial office or from your home, you may be required to obtain a business licence. Business licences are issued by your municipal licensing board and are usually inexpensive. Specialty licences or provincial or federal licences can also be required. For example, if you sell liquor, you will need a provincial liquor licence. If you own a restaurant, you will need a licence to sell food. A lawyer can help you determine what type of licence, if any, you will need for your business.
- Taxes
Most businesses will need to register to collect the Provincial Sales Tax (PST) and the federal Goods and Services Tax (GST). Ontario businesses must collect 8% PST and 7% GST on most goods and services. You can register for the Provincial Sales Tax at the Retail Sales Tax Government Branch. You can register for the Goods and Services Tax through Canada Revenue Agency. Canada Revenue Agency will issue you a business number and tax forms that need to be submitted periodically. Businesses with total sales of less than $30,000 in a moving 12 month period are not required to register for the Goods and Services Tax.
- Business accounting records
All businesses are required to maintain proper records of business transactions including sales records, bank statements, expenses and cancelled cheques. An accountant or a bookkeeper can help you with this.
- Regulations about employees
If a corporation has employees, it will be required to deduct employment insurance premiums, Canada Pension Plan contributions, and income tax from employee salaries. These deductions, along with your employer's contribution to employment insurance and the Canada Pension Plan, must be submitted to Canada Revenue Agency by the 15th day of every month. The deduction amounts are set by Canada Revenue Agency.
If your business has employees, you may also need to register with the Workplace Safety & Insurance Board. It provides funds for people who are injured on the job. You can contact the Workplace Safety & Insurance Board for a free registration and information kit.
In addition to these general regulations, there are many specific government regulations that may apply to your corporation. It is important to make sure that you comply with all of the regulations that apply to your business. If you are uncertain which regulations apply to you, you should contact a lawyer for advice.
For more information about business law matters, refer to other sections of Legal Line .
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