business development services 1 what are the rules & regulations for your business? session 7
TRANSCRIPT
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What are the rules & regulations for your business?
Session 7
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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
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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
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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
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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
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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
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Group activity: Sole proprietorship Partnership Corporation Co-operative (co-op) Social enterprise
Rule # 1: Business structure
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On your flipchart Write key points about this business
structure Think of an example of this structure you’ve
seen in the community
Activity
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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
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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
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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
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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)
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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)
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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
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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)
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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
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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
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Depends on type of business BizPal is a great resource www.bizpalmanitoba.ca
Rule # 4: Licenses and permits
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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
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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
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Insurance Liability, vehicle, property and contents,
WCB, etc. Legal advice
Contracts, leases, rental agreements, insurance, etc.
Other guidelines