Are You Ready to Start Your Own Construction Business?
You are tired of working for someone else? You and a few friends are well experienced in the construction industry and you see that this industry is booming in Ontario. You don’t want to get caught up in the tax implications when it comes to being a sub contractor so you want to do it right and incorporate your own business.
Sounds easy, and it may seem like the most logical thing to do, but before making that final decision there are several things that you need to consider.
First thing you need to determine is what type of services are you going to offer? Are you going to offer general construction services, or are you going to specialize?
You need to develop a clear and well laid out business plan. This will act as your guideline for taking you through all of the necessary steps to get your construction business started.
You will need to decide whether you are going to register your business as sole proprietor, partnership or incorporate it.
Next you need to do the research and fully educate yourself as to what licences you need to conduct your business and what government regulations you need to comply with.
You will need to obtain a business account in respect of taxes, and most likely you will need to register for payroll remittances. You also need to know where you stand with your obligations for the collecting and remitting of HST.
You have chosen to open a business in Ontario that is within an industry that comes with a lot of rules and regulations. Often these are the reasons why a lot of construction workers simply prefer not to open a business.
You are working in what is classed as skilled trades in Ontario. This means you must have completed all of the proper training and apprenticeships that are associated to your particular trade. You must have a valid certificate of qualification that depicts this.
Then there is the financing for your new Company that you are going to have to consider. Chances are you have some personal investment funds, but you may soon discover that it is going to take more money for start up than what you realized. This is why it is most important to have a business plan that includes the financing projections. Even if you have enough funds to make your equipment purchases, and set up your location you are going to need a specific amount of money for your cash flow until your company starts generating an income.
If you are thinking of starting your own construction company you may want to consult with an experienced accountant. This expert can look over your business plan to see if you are on the right track with your financial forecasting. You will also want to ensure that you utilize the services of this type of professional on an ongoing basis once you get the company started.