Starting a Trades Business in Canada
Launching a trade business is exciting. This guide walks you through the essential steps to get started on solid ground.
Choosing Your Business Structure
Most tradespeople start as a sole proprietorship — it is simple and inexpensive. As you grow, incorporating offers liability protection and tax advantages. Consider consulting a lawyer or accountant to decide which structure fits your situation.
Registering Your Business
Register your business name with your provincial government. You will also need a Business Number (BN) from the Canada Revenue Agency for tax purposes. Depending on your trade, you may need a provincial trade licence or certification.
Getting Insured
Liability insurance is critical. Most clients and general contractors will require you to carry at least $2 million in general liability coverage. You may also need tool insurance, vehicle insurance, and workers compensation coverage depending on your province.
Setting Up Finances
Open a separate business bank account to keep personal and business finances distinct. Set up accounting software (QuickBooks, Wave, or Xero) to track income, expenses, and invoices. Remember to charge and remit HST/GST once you exceed $30,000 in revenue.
Building Your Brand
A professional brand sets you apart. Invest in a logo, a simple website, and branded vehicle wraps or uniforms. Consistent branding builds trust and helps you charge premium rates. Start collecting reviews early to build social proof.