New Business Checklist: 10 Essential Steps for Launching Your New Business in British Columbia
- Fraser Barrett
- Oct 19
- 5 min read
Updated: Oct 21
Blog Written by Fraser Barrett CPA (Partner)
Hello, entrepreneurs! At Aspect Accounting, we're passionate about helping new business owners in British Columbia navigate the exciting yet complex world of startups. With over a decade of finance experience, we've seen firsthand how a solid foundation in accounting, compliance, and risk management can make all the difference between thriving and struggling. Starting a business is a thrilling journey, but it's crucial to get the basics right from day one to avoid costly pitfalls down the road.
In this blog post, we'll walk you through a comprehensive checklist for starting a new business in BC. Let's dive in!
Step 1: Develop and Validate Your Business Idea
Before diving into registrations and systems, ensure your idea is viable. Conduct market research, identify your target audience, and create a business plan outlining your goals, revenue projections, and expenses. This plan isn't just for investors—it's your roadmap and will be invaluable for accounting purposes, like forecasting cash flow.
Pro Tip from Aspect: Include a financial section in your plan with startup costs, break-even analysis, and projected income statements. If you need help crafting this, our team can assist with customized financial modelling.
Step 2: Choose Your Business Structure
Your business structure affects taxes, liability, and operations. Common options in BC include:
Sole Proprietorship: Simple and low-cost, but you're personally liable for debts.
Partnership: For multiple owners; consider a partnership agreement to outline profit-sharing.
Corporation: Offers limited liability but involves more paperwork and costs.
For this blog we will assume that you are starting an incorporated business
Seek advice from a lawyer and an accountant about share structure classes. Thought is needed when multiple shareholders are involved.
Step 3: Register or Incorporate Your Business
Register your business with the Province of BC via the OneStop Business Registry or BC Registries. This involves two steps:
Name Request - You first file a name request with three name options.
Availability - If the name you want is available, you can continue incorporate. If not, you can submit another name request.
Incorporate - Use share structure to file incorporation papers.
Step 4: Obtain Necessary Permits and Licenses
Depending on your industry and location, you'll need permits from municipal, provincial, or federal levels. For example:
Zoning approvals from your local city hall.
Health and safety permits for food services or retail.
Industry-specific licenses (e.g., liquor licenses for bars).
ProTip: Check the BizPaL tool on the Government of Canada website to search for required permits based on your business type and location.
Step 5: Open Incorporated Bank Account and Credit Card
Take incorporation papers & ID into a bank and open the following:
· Business Checking - For all business income and vendor payments
· Business Credit Card – It is essential to open a business credit for all business transactions. This split between business and personal transactions allows for easier and reporting and less work splitting transactions.
ProTip: Our favorites are CIBC and RBC
Step 6: Register with the Canada Revenue Agency (CRA) / Etax BC (PST)
Registering with the CRA is non-negotiable for tax compliance. Here's how:
Locate your Business Number (BN): This 9-digit identifier is used for all CRA interactions. This can be found on your incorporation papers
GST/HST Registration: If your annual revenue exceeds $30,000, you must register for GST/HST. Even if below, voluntary registration allows you to claim input tax credits. Register using BRO (business register office)
Payroll Accounts: If hiring employees, set up a payroll program account to remit deductions like CPP, EI, and income tax.
Other Accounts: Depending on your business, you may need import/export accounts or other accounts
Review if you need to register for PST: Generally, services and PST exempt and products require PST registration. Review rules in detail for your own business.
We handle CRA registrations seamlessly, ensuring you're set up correctly to avoid fines.
Step 7: Secure Business Insurance
Business insurance is essential to protect against risks like lawsuits, property damage, or theft. Key types include:
Commercial General Liability (CGL): Covers third-party claims for injury or property damage. Recommend at least $1-2 million in coverage.
Property Insurance: Protects your business assets, like equipment or inventory.
Professional Liability (Errors & Omissions): Crucial for service-based businesses.
Cyber Insurance: Increasingly important in 2025 with rising cyber threats.
Certain industries (e.g., construction) may have mandatory requirements via local laws. Shop around with providers like BCAA or Westland Insurance for tailored policies. As accountants, we often see uninsured risks lead to financial ruin—don't skip this!
Step 8: Register with WorkSafeBC (WCB)
If your business has workers (including yourself if incorporated), you must register with WorkSafeBC for workers' compensation coverage. This protects against workplace injuries and is mandatory for most employers in BC.
Who Needs It? As an incorporated business you will need to register for WCB.
How to Register: Apply online via the WorkSafeBC portal. Provide business details, estimated payroll, and industry classification.
Costs: Premiums are based on your industry risk and payroll (e.g., 0.3-5% of assessable payroll). No upfront fees, but annual reporting is needed.
Non-compliance can result in fines. We recommend registering proactively to ensure coverage from day one.
Step 9: Set Up Your Accounting System
A robust accounting system is the backbone of your business, helping track finances, prepare taxes, and make informed decisions. As experts in this area, here's our recommended setup:
Choose Software: Opt for cloud-based tools like QuickBooks Online, Xero, or FreshBooks for ease of use and real-time access.
Separate Accounts: Open a dedicated business bank account and credit card to keep personal and business finances distinct.
Track Everything: Categorize expenses (e.g., supplies, marketing), log income promptly, and reconcile monthly.
Best Practices: Maintain receipts digitally, and set aside funds for taxes (e.g., 25-30% of profits). Review finances quarterly and consider outsourcing to pros like us for accuracy.
Starting with good habits prevents headaches during tax season. Our team can set up your system, train you, and provide ongoing bookkeeping support.
Step 10: Other Essentials
Hire Professionals: Engage an accountant, lawyer, and possibly a bookkeeper early.
Marketing and Operations: Set up a website, social media, and operational tools like POS systems.
Tax Planning: Understand how to navigate the tax system with strong advice.
Ongoing Compliance: File annual reports, renew licenses, and stay updated on changes.
Wrapping Up: Your Path to Success
Starting a business in BC is an achievable dream with the right preparation. By following this checklist, you'll mitigate risks, ensure compliance, and position your venture for growth. Remember, insurance shields your assets, WCB protects your team, CRA registration keeps you tax-ready, and a solid accounting system provides clarity and control.
If this feels overwhelming, you're not alone—many entrepreneurs turn to experts like Aspect Accounting for guidance. We offer free initial consultations to review your setup and tailor solutions to your needs. If you need a hand - book a call today!
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