Canada, if you are incorporating your business, you will need to do a name search. In some provinces you can go online and do a search through the NUANS system (Newly Updated Automated Name Search), while in others you will need to complete a name reservation or approval request form through your local government registry. For more information you can go the government’s Canada Business website at www.cbsc.org.
Make sure you research your state or province’s requirements for business, including name registration, permits, and licenses. In the US, you will need to contact the IRS to acquire an employer identification number (EIN), which is similar to a social security number for businesses. In Canada, you will need to contact the Canada Revenue Agency (CRA) to acquire a business number (BN).
Searching the Internet for your proposed business name
Search for your proposed business name on the Internet and find out if such a company already exists. I am a strong believer that Internet presence is essential to reaching a wider audience in your immediate community and beyond. Having a unique name can only help you in this regard.
Go to such sites as www.godaddy.com, www.networksolutions.com, or many others on the market and buy the domain name you are interested in now even if you do not plan to create a website yet. It can be as cheap as $8 through some companies. (A large part of Chapter 7 is dedicated to why a website is important, and what work goes into the building and design of websites, particularly for an art school business.)
Do a search with various key words to see what other websites there are of companies that may have names that are similar to your own. You would not want to break any copyright, trademark, or other laws. Also, look at the results of possible search words your prospective clients or their children might use.
Making Your Business Legal
Do some research and speak with professionals such as your accountant, your lawyer, or businesspeople in your social network to find out what you need to do to make your business legal. Get the appropriate licenses and liability insurance for your business before going any further.
Incorporation and other business structures
Incorporating a business can help protect you personally from lawsuits and creditors. You will need to research this carefully, and you may want to hire a business lawyer to help you set up your business properly. You may also want to contact a certified accountant to help you with any tax issues that may arise from your company.
In the US, you can either create your business as an S corporation (“Inc.”) or limited liability company (“LLC”). Creating an S corporation or an LLC can shield you personally from lawsuits and creditors. For more information, go to www.sba.gov as well as www.ccr.gov (the Central Contractor Registration website).
In Canada, you can either incorporate your business or create a sole proprietorship. If you incorporate your business you will have limited liability, which means that you will be protected from creditors and lawsuits. If you choose to start out as a sole proprietorship, you will have lower start-up costs, but you must be aware that your company will have unlimited liability, that is, you will not be protected from creditors and lawsuits. You can always start as a sole proprietor and choose to incorporate your business as your company evolves.
In Canada you can also register as a partnership, which means you and your partner will share all the profits and losses of the business. If you decide to take on a partner, carefully consider all the advantages and disadvantages of doing so. Many small companies and businesses have people who run things internally but who may not have the capacity or desire to sell, market, promote, or be the front person, and vice versa. Make sure you and your partner have skills that complement each other’s, and that the business is a good fit for both of your personalities.
Sales tax registration
If you plan to sell art supplies, obtain accurate information regarding relevant taxes for buying and reselling goods, and make sure your zoning permit allows you to be selling products from your premises.
You will have to register for a sales tax number in advance. This applies in all states and provinces that have sales tax. Take the time to learn about record keeping of all incoming and outgoing documents, and how often you must file tax returns. With assistance from your accountant, you should be able to form an organized system, and maintain it with the least amount of disruption to your day.
To find out more information about sales taxes, go to your local government office or visit its website. There are also many good books at your local library or bookstore that cover the topics of collection and remittance of sales taxes. When in doubt, contact an accountant, who will be aware of the latest tax regulations.
Liability insurance
Have an in-depth discussion with a home or business insurance agent in your area. Shop around for the best plans and figure out exactly what type of coverage your business needs. Give the insurance agent all the details, making it clear exactly what you plan to do in the business and at the premises. You will find that there are precise safety regulations. Also ask a seasoned business associate for advice based on what he or she had to go through.
I made sure that I obtained the highest-liability insurance coverage available, and I advise you to do the same. The premiums are not costly, and it is essential that your school be completely insured against liability, in case of any student or staff injuries. This is particularly true if you are not a limited liability company.
Police check
A large number of your students will probably be children. To help alleviate some of the valid concerns parents and school boards may have, you should undergo a criminal record check. For more information, contact your local police department. There is a cost for the service, which varies depending on your location.
You should also request your prospective employees to do the same. I recommend that you always verify their references as well. These people are coming in under the umbrella of your school. Do your homework at the beginning. Keep the children in your care as safe as you possibly can.
2
Becoming A Multifaceted Entrepreneur
What one does, one becomes.
— SPANISH PROVERB
As you get started with your business, you also have to take a long, hard look at yourself. Do you have what it takes to be an entrepreneur?
I define entrepreneur as an industrious, resourceful, tenacious individual who leaves no stone unturned when it comes to achieving his or her highest goals. All an entrepreneur cares about is when, where, and how to succeed. For the entrepreneur, competition is a way of life and perseverance is second nature. Failure is not an option. And an entrepreneur gets to the top with integrity and by being aware of how one’s actions affect the community at large.
Although there is no guarantee, the more you put into your business, the more you achieve. It is your choice if you spend your days working in a nine-to-five job, and going home to relax in front of the TV. If you want to achieve something more in your life, however, then take the steps to make your dreams become reality. Remember that a journey of a thousand miles starts with one step.
Characteristics of an Entrepreneur
Being an entrepreneur means adapting to the trends and demands of the business environment. You must apply the skills you excel at and learn to constantly exceed your own expectations, and you must also learn how to do new and specialized things (which other professionals can do for you eventually as your business grows). If you are lacking in some skills, act quickly