Table of Contents
Start a Business in Manitoba
Starting a new business in Manitoba is an exciting journey, but the administrative checklist can feel a bit overwhelming. At Harmony Ledger, we help entrepreneurs navigate the financial side of setting up shop so you can focus on what you do best. Here is our essential guide on how to start your business with a solid foundation.
1. Choose Your Business Structure and Register Your Name
To get started, you’ll first need to decide whether you plan to incorporate or operate as a sole proprietorship. This decision is important because there are specific naming format requirements depending on your chosen structure. Once you know your path, you can register your business name through the Companies Office of Manitoba. The cost is currently $45, and you can expect a response by email within a few weeks.
2. Secure Your Business Number (BN)
Once your name is approved, you must apply for a Business Number (BN) through the Canada Revenue Agency (CRA). This number is the main identifier for your business and is strictly required to open a corporate bank account.
3. Open a Business Bank Account
With your business name and BN in hand, head to the bank. It is critical to keep your personal and business transactions entirely separate. Furthermore, a dedicated business bank account is required to remit GST and payroll deductions online—personal bank accounts do not have access to these commercial remittance services.
4. Understand Your Tax Thresholds
Knowing when to register for taxes is a vital part of practical accounting for effortless success.
- GST: Registration is required once you meet the applicable revenue thresholds. That said, if you expect significant startup costs (such as large equipment purchases), it may be beneficial to register early so you can claim input tax credits (ITCs) right away.
- MB PST: Manitoba also has a provincial threshold. If you sell taxable items or services, you must register and start collecting PST after your annual taxable sales reach $30,000.
5. Set Up Your Payroll
If you operate as a sole proprietor, you can hire employees, but you cannot pay yourself through payroll (you would need to incorporate to pay yourself a salary with deductions). If you plan to hire a team, you’ll need to open a payroll account with the CRA.
While it’s possible to run payroll manually using the CRA’s online calculator, it can be incredibly time-consuming—especially when filing T4s and Records of Employment. Because of this, using dedicated payroll software is strongly recommended, and you should also register for ROE Web right away.
Let Us Set Up Your Accounting System
You don’t have to do this alone. At Harmony Ledger, we will set up your entire accounting system. We’ve spent years identifying the best bookkeeping software for small businesses, and we can tailor a financial ecosystem that sets you up for long-term growth. Contact us today to get started!