How to start as a freelancer in Canada

[kthdsn]

Hey everyone,

I have been scouring the web recently for information about starting a business as a freelance web designer in Canada (I live in Toronto) but there are so many sites and they all seem to give vague information and point to lists of other sites with similarly vague information. I am really struggling to understand anything at all about what needs to be done.

I was wondering if there was anyone here who could point me in the right direction or help me out a little? I have a website and plenty of ideas and have been looking for potential clients, I'm getting on quite well with that side of things, it's just the official stuff, actually becoming a sole trader and understanding the taxes and things like that.

I would really appreciate any help/advice/links to the information I need. Thanks guys!

Kate xx

[1000feet]

Kate, I'm actually doing something similar (everything except design) and I'll have to figure out more of this stuff before I get too much further. The way I understand it is that once you get to a certain level of income from Canadian clients (I think it's around $30000) you have to register with the government to collect GST - you can always just include it in the price to keep things simple.

If you're just working on your own you probably don't have to worry about what type of business you have, at least when you're starting out. This is a very simple line of work after all - do the job and get paid - that doesn't require a lot of capital or inventory. Later on you might want to talk to an accountant or a lawyer to see if there's better options for you.

For now the best source of information is probably government websites; they can be a bit hard to find, but if you start at the top (government of canada, government of ontario) you can probably find several different ones aimed at helping you understand what you have to do.

[localman]

I've run 2 businesses in Canada since 2003, one similar to what you're doing and another a hyperlocal news website.

The most valuable suggestion I can make to you is to find a bookkeeper you can rely on. If you know one, great! If not, start asking around to some other businesses owners that you know and who they use.

Many bookkeepers look after the books of small companies on the side and you should be able to find one that you can pay to contract to you.

It costs some money up front, but they'll be able to tell you all about gst, pst, source deductions, payroll, ...and more fun.

Best of luck on your new venture! It can be a rough road, but also very rewarding.

Localman
IDEAS On Business

[Steve MacLellan]

Originally Posted by kthdsn

... it's just the official stuff, actually becoming a sole trader and understanding the taxes and things like that.

I'm not sure of the actual resources in Toronto. But any government agency should be able to tell you where to register your business. In Nova Scotia, I registered mine through Access Nova Scotia -- costs $55 per year.

In the last four years I've been through 3 accountants. The previous one was charging me about $600 per year. According to some business courses I took, the price seemed fair enough. But if you look around you can get a deal. I'm only paying $60 now for the same thing I was paying $600 for.

Another thing to consider is to attend small, free or low-cost workshops. You can check at a local community college and check government services. For example, in Atlantic Canada we have ACOA (Atlantic Canada Opportunities Agency) which puts on workshops for new business people. They typically have weekly meeting with guest speakers who come in and talk about lawyers, accountants, leasing, marketing and advertising, pricing, book-keeping, etc...

ACOA link: Atlantic Canada Opportunities Agency

Some other links of interest:

Atlantic Collegiate of Entrepreneurs (ACE)

ACE-Canada is a registered national not-for-profit organization dedicated to helping young entrepreneurial Canadians succeed in the new economy. This new economy represents a fundamental shift from a limited locally driven economy to an interdependent global community. Today, having a distinct competitive advantage is becoming less dependent on geographic location or tangible capital assets, but more on globalization and the harnessing of intellectual capital.

ACE-Canada is actively inspiring, uniting, and educating the next generation of entrepreneurial leaders so they may excel in the new economy, ensuring Canada's place as the leading nation to live, work and prosper.

Phone: (416) 304-1566
Toll Free: 1 800 766-8169
Fax: (416) 304-1569
Email: info@acecanada.ca
Web Site: Ace
Address: Berkeley Castle
250 The Esplanade, Suite 410
Toronto, ON, M5A 1J2

Canadian Foundation for Economic Education

CFEE aims to identify, and help impart, the fundamental concepts of economics, enterprise, entrepreneurship, and personal finance that must be factored into the decisions and actions we face in our day-to-day lives. CFEE develops curriculum for schools, and help teachers improve their knowledge and teaching techniques , they produce print and multimedia resources for use in classes across the country. The CFEE works at all levels of learning from elementary to college and to the general public.

Phone: (416) 968-2236
Toll Free: (888) 570-7610
Fax: (416) 968-0488
Web Site: Canadian Foundation for Economic Education / Fondation canadienne d'education economique
Address: Canadian Foundation for Economic Education
110 Eglington Avenue West, Suite 201
Toronto, Ontario M4R 1A3

Canadian Youth Business Foundation

Youth Business is a non-profit organization dedicated to helping enterprising young people achieve their business dreams. Assisting young entrepreneurs to get their ideas off the ground, Youth Business offers programs and services that allow them to achieve economic independence, develop self-confidence, and fulfill their goals of self-employment. Services include loans, mentoring, and Youth Business.com.

Phone: (416) 408-2923
Fax: (416) 408-3234
E-mail: info@cybf.ca
Website: Driving Canada's Business Success - CYBF
Address: Canadian Youth Business Foundation
123 Edward Street, Suite 1404
Toronto, Ontario, M5G 1E2

If you get in touch with some of the people at these organizations, I'm sure you will be on the right track.

Good luck with your business.

Best Regards,
Steve MacLellan