Averting Disaster – Do Your Research (Part 2)

When close to 1000 hours of work have gone into designing and marketing a product and suddenly, because of legal complications, the product has to be completely rebranded – where does one begin?

The following story is true. Certain names and details have been altered to protect the privacy and integrity of those involved.  Read Part 1 of the article.

Step 1 – Scramble

Upon receiving the news that The Tea Council had to be retooled, three things happened almost immediately. The first was our project manager had a brief meeting with each individual involved in the project and asked us what was necessary and what was possible based on what needed to be rebranded. He asked specifically if it could be done in a week. The second thing that happened almost instantly was a decision was made on what to now call the conference. It was changed to “The Tea Lovers Summit”. Finally, an email blast (about 40,000 emails) was sent to everyone who had already signed up for, or purchased, the summit explaining that it was being pushed back by one week.

Step 2 – Rethink Possible

My initial reaction was that it couldn’t be done. For my part, I would have been responsible for removing any mention of the term “the tea council” from both audio and video of all content materials. When I considered that I had already put in 100 hours of work and had to contemplate the host of the conference potentially redoing or scrapping several interviews, I thought there was no way it could be done along the desired timeline. Upon deeper reflection, I thought about removing most of the work from my own time and allowing most of the work to fall on my computer’s shoulders.

It takes far longer to grow a hedge than it does to trim it. Removing any specific mention of “the Tea Council” didn’t mean listening through and completely reediting the interviews or completely building a new video – the processes that are the most time consuming – it meant just chopping off a few bits and making a new file. Luckily the lawyers did a lot of the work for me. Transcripts of every presentation, which had already been done by our team, were handed over to the summit presenter’s lawyers and were then transferred over the Council on Teas legal team for review so as to determine what kind of verbiage would need to be omitted from the presentations. We discovered that the Tea Council was only ever specifically mentioned during the introduction and outro of every presentation. I had the presenter record a standard introduction that used the new moniker for the conference, which I then replaced with all the previous introductions, and simply cut any mention of the conference should it have happened an the end of the presentation. This meant that almost 99% of the presentation stayed in tact. From there it was a simple replacement of the audio from the videos with the new presentation audio, instead of building a brand new video from scratch.

Step 3 – Prepare For a Few Sleepless Nights

Besides all the work on my end, there was the website which thankfully didn’t have to be rebuilt, only migrated. All the copy had to be changed, and with all the banners and logos the style was fine and only the wording had to be tinkered with slightly. Getting all the content back out took a mere 3 days, and most of that work was my computer rendering new files - I simply had to be around to set it up and execute it.

The Fallout

At the end of the day we had all our materials approved and ready for the new launch a solid 48 hours before the conference was finally released to the public. Dealing exclusively digitally meant that no manufactured products had to go to waste. Ultimately, what it amounted to was nothing more than 24 hours of unwarranted panic because of course it was possible to rebrand the entire conference. All it takes to do anything is a competent team, assured in their own strengths, with the commitment to get the job done. Admittedly, the conference did not achieve the lofty expectations we had initially set out with, but we learned what our team was capable of when put under duress – and the response was nothing short of splendid. Furthermore, we learned a very valuable lesson – before you do anything, do your research.

GST Registration for Canadian Businesses

Most Canadian businesses are required to register for GST.  The exception being some small suppliers – sole proprietorships, partnerships or corporations that have total taxable revenues that are less than $30,000 annually after expenses or if your business only provides GST exempt goods or services (i.e. child care or music lessons).  To determine if you are exempt from GST registration, click here  for the CRA requirements.

Even if you qualify as a small supplier, you may want to consider registering for the GST anyway.  Because you’ll be paying GST on purchased goods for the business, your GST registration will allow you to recoup some of the GST paid out on business purchases through Input Tax Credits. 

Registering for GST is actually quite easy.  The main thing to remember is that it needs to be done within 29 days from the day in which your business exceeds the small supplier amount in revenues ($30,000).   GST registration can be done either online or over the phone with the CRA.  You’ll be given a GST/HST number (also called a Business Number) to be used on invoices, for accounting and on all tax-related paperwork. 

Once you’ve registered for GST, you’ll be assigned a reporting period based on your total annual sales, which can be either monthly, quarterly or annually.   For your reports you’ll need to prepare a GST return showing the amount of GST/HST you’ve charged customers as well as the amount of GST/HST paid to suppliers.  This can get complicated when factoring in your Input Tax Credits as well as the various classes of GST/HST goods and services.  For more information on this, please visit follow the link. 

It’s important not only to keep your records and bookkeeping up to date and accurate, but also to understand the GST registration and reporting process from the outset so that you’re not scrambling to prepare your reports for each period and you’re maximizing your Input Tax Credits as much as possible.  

For One Day Only We Pay Your Professional Fee!

After weeks of preparation, the tax season has finally come to a close and we want to celebrate by paying the professional fee on your next business incorporation.

On May 1st we will cover the cost of the professional fee ($99 value) when you incorporate your business with CorporationCentre.ca.*

Incorporating your business protects you and your shareholders from debt and liabilities associated with your company and can help you save on taxes!

For more information on the advantages of incorporating, click here.

To take advantage of this offer, simply use the Promotional Code CC99INC2014 before submitting your incorporation order. The promotional code is valid on May 1st 2014 only.

Click here to start the order process.

*Plus government fees and optional products and services. Does not include non-profit incorporation. 

Named vs. Numbered Corporations

Choosing a name for your business can be a tough task. Not only do you need to come up with something distinctive and original that describes your company, you also have to make sure that the name isn’t similar to any other named corporation out there. Each jurisdiction has its own set of requirements for names and this can lead to a frustrating process.  Sometimes your first choice just doesn’t cut it and you have to go back to the drawing board.

 Numbered corporations allow you avoid delays and expense involved in searching for and reserving a corporate name. So if you need to incorporate quickly, this is a good option. You would be required to use your incorporated number for any legal matters or relations (i.e. contracts, government filings), but you are able to register a trade name and be known to your customers as operating under such trade name. Or, you can always file Articles of Amendment at a later time to change from a numbered to a named corporation.

If you’re set on having a named corporation, make sure you have at least 3 possible options for your name.  Don’t put all your eggs in one basket or the outcome may be very disappointing! Having variations of your name submitted allows for a better chance that at least one will be approved and you’ll avoid the back and forth paperwork, time and expense of re-submitting names. Stay tuned for our blog post on how to choose a corporate name, for tips on best practices when coming up with a name that suits your business AND the legal requirements.

There are positives and negatives to choosing between a named and numbered corporation and it is dependent upon the objectives of the business and its shareholders. For the best outcome, weigh your options carefully and create a plan of attack before you begin.

For more information, visit our website at www.CorporationCentre.ca !

Canadian Corporate Taxes

How to Maximize Your Return

It’s that time of year again –the dreaded tax season.  For business owners with incorporated corporations whose fiscal year has ended, this means having to file two separate returns – personal and corporate. It’s a daunting task to say the least, which is why many businesses chose to hand over their paperwork and receipts to a trusted accountant. But for those of you who are do-it-yourself types, here’s a guide to help you maximize your corporate tax return.

Type of Corporations

There are various types of corporations in Canada, all of which are subject to tax rates dependent upon corporate status. The corporations that have the lowest tax rate are Canadian-controlled private corporations (CCPCs).  These are entirely private corporations controlled and operated within Canada. CCPCs are eligible for the Small Business Deduction which, at this time, stands at 11%, the lowest tax rate available to corporations. All other corporations that do not fall under this category, whether private or public, are taxed at a higher rate. It is worth investigating at the outset the potential of having your business structure set up as a CCPC in order to benefit from the deduction.

Corporate Tax Credits

Research and Development Tax Credits: To qualify for an R&D tax credit (or the SR&ED Program) your company must be involved in experimental development, applied research, basic research and support work which would lead to advancement or address uncertainty in technological and scientific areas. This can encompass a wide range of R&D and is particularly useful for tech and environmental start-ups that are developing new products or improving upon existing products in the marketplace.

Tax Credits for Small Businesses: In addition to R&D tax credits, Canadian businesses can benefit from a range of tax credits for small business. Some credits are dependent on jurisdiction or depend upon industry, while others are Canada-wide and not industry-specific. Tax credits include areas such as apprenticeship job creation, designated activities on qualified property, child care spaces and pre-production mining.

Corporate Income Tax Deductions

If your corporation doesn’t qualify for any tax credits, take a look at potential corporate income tax deductions, you may be surprised what can be included! Below are some examples:

·         Gifts to employees
·         Automobile expenses
·         Insurance
·         Office expenses
·         Mortgage interest & security
·         Business meals/entertainment
·         Conventions
·         Canadian advertising expenses
·         Accounting/legal services
·         Home-based business expenses

Taking the time to research all the available tax credit and deductions for your small business can definitely help you save money in the long run. Take advantage of the incentives the Canadian government provides small business – that’s what they are there for! Good luck and happy filing.

Free Shipping on Business Registration

If you’re thinking of starting a small business, now is the time!

Why not start small with a business registration? A business registration, or sole proprietorship, is the simplest form of operating a business - the registration process relatively easy and the start up costs can be minimal.

This week we’ll save you even more with FREE shipping on any business registration orders. From April 14-18 use the promotional code CCBR19SHIP* in your shopping cart to receive the free shipping discount ($19 value). 

Use the promotional code yourself or pass it along to the other entrepreneurs in your life!

Starting your business is easy with CorporationCentre.ca!

Click here to start the business registration order process or call 1-866-906-2677 for more information.

*Code valid from April 14-18, 2014. Discount for shipping costs valued at $19 for business registration orders only.

Averting Disaster – Do Your Research (Part 1)

I was recently privy to one of the worst branding disasters I’ve ever encountered. The effect on the team launching the product was near catastrophic and hindsight proved just how avoidable it all was. There are a few simple rules to a product launch and I’m hoping that my recent experience can shed a light on how to avoid this problem in the future.

The following story is true. Certain names and details have been altered to protect the privacy and integrity of those involved.

The Product

I work as a digital media consultant responsible for developing content for various companies that choose to market their business on the internet. A well-intentioned individual who runs a website and blog devoted to tea was looking to expand their audience by hosting an online tea conference bringing experts from all over the world to discuss everything concerning tea, called “The Tea Council”. The online conference would be composed of 30 presentations and interviews on various subjects as they relate to tea marketed for free over a one-week period, and available for sale thereafter through the blog and various affiliates for $29.99.

The Team

A tremendous amount of work is involved to put together one of these online conferences for which there are numerous benefits to the consumer. First, during the week of the conference the information is available for free. Second, there is no need to buy a ticket, purchase a flight, or book a hotel room in another city - the entire conference can be enjoyed from one’s bedroom. And finally, the information is available to the consumer in perpetuity. In order to create this product, a whole content team and marketing team need to be assembled to create the product and to put it out to the world. Web space for the “theteacouncil” was purchased and all content and marketing for the conference would be channeled through that space. A single online conference takes a solid 2 to 3 months to put together employing about a dozen individuals all trained in their specific discipline as well as coordinating with a large group of experts who all have a stake in how great the reach is for this conference.

My Role

As the one responsible for designing the content, it was my job to consult with our client on how to make the best use of digital media to communicate the information of an expert with an audience of lay people. An interview is conducted between the conference host and the expert that is recorded and edited, and then turned into a final podcast-type deliverable for the consumer. Those interviews are then transcribed, from which a power point presentation is created. This power point is then turned into a video and is matched with the audio presentation which itself is delivered to the consumer. All in all, for thirty presentations, on my end alone, it was about 100 hours of work.

How It All Broke Down in the Blink of an Eye

We were less than a week away to launch. All the content was in place, all the affiliates were on board, and initial pre-registrations had already taken place. Heavy traffic was already heading to the website and sales were already being made. The client received a cease and desist letter from the owner of a website called “councilonteas.com”. After an initial review from a lawyer, although being reassured that the Council on Teas didn’t have much of a case, legal fees alone would cut significantly into the budget of the conference. The owner of the Council on Teas was also adamant that a deal could not be struck and that the Tea Council was in breach of a trademarked product and would be legally blocked from launching their product, and would face legal repercussions and be prosecuted to the full extent of the law, should they continue with their launch as planned.

 Lesson Learned

A simple Google search would have shown the existence of the Council on Teas company and their website, and the initial decision to launch the conference as “The Tea Council” had to be considered a terrible oversight. Even if the desired web space was available, it would have been preferable to do some initial market research and explore any websites and names that might have even been remotely similar to anything they wanted to launch.

Read on to Part 2 to find out what it took to finally get a completed product completely rebranded and launched.

How To Start a Non-Profit Corporation

The non profit sector is one of the fastest growing in North America today.  With over 15,000 registered charities in Canada alone, it is important for newly formed non profits to fill an existing need in the community.  Non profit organizations must have a clear understanding of their mission and goals in forming the organization in order to not impede on existing corporations and to find success as an organization.

Similarly to corporations, non profits need to also address the legal requirements associated with starting their organization.  Non profit corporations are required to have a board of directors.  Likely this will be a group of founding members of the organization.  The board should be established right off the bat so that all other decisions are made by those who have a vested interested in the corporation.  Mission, roles, responsibilities, headquarters and financing will need to be hashed out before any legal paperwork can be started.  Most importantly, the board will need to establish a name for the organization and whether to incorporate the organization, become a registered charity, or both.

After selecting and registering your corporate name, you may choose to incorporate your non profit.  Though not essential to do so, incorporating will give the organization a legal status and with it rights and responsibilities.  The process to incorporate a non profit is generally the same as a corporation.  You can incorporate federally or provincially and requirements are dependent upon the jurisdiction in which you incorporate.  The one difference is the option to also register for charitable status.

In order to be granted charitable status, you must apply through the Canada Customs and Revenue Agency by fulfilling a number of requirements. In order for an organization to be registered its purpose needs to either relieve poverty, provide advancement in education, advancement in religion, or benefit the community in certain ways in which a court has deemed acceptable.  The process can take up to 8 months to complete, but after completion your non profit will have the advantage of providing tax receipts to charitable donors as well as receiving certain tax deductions. 

Following these first steps will help your non profit corporation achieve success in its mission and future activities in the community!

Click here to find out more about non profit incorporation and to start the incorporation process!

It’s Good to Be the Boss

We all come to a crossroads at some point in our life - a defining moment to choose one path over another and accept where it leads us. After college I bumped around from job to job trying to build up my experience, and my resume, looking for the right opportunity to grow and be a part of something big. I hated it. I mean I really couldn’t stand it. Everything about holding a job made me feel rotten inside. It’s not that I’m averse to working hard, or that I think that having a job is wrong for everybody, it was just that after a decade in the rat race I discovered a few important things about myself.

Balance

The first thing that I learned was that working for someone else made me really tired. The simple expectation of adjusting my schedule to suit someone else left me lethargic and with a distinct palpable malaise that made me angry at life, and it seeped into my free time. Since starting my own business I actually work more than I ever have, but because it’s on my own terms I seem to have a lighter step and am able to walk between the raindrops which has helped me to enjoy my free time even more. The positive impact this has had on my health and wellbeing has also been noticeable as, because I no longer suffer from the same lethargy, I find myself using my free time to be more active as well as making time to cook a proper meal instead of settling for something quick and devoid of nutrition.

I Have Really Good Ideas

Within every company I ever worked for there was a hierarchy. It seemed odd to me that all the people higher up the chain of command were celebrated for having all of the best ideas. All of my contributions were immediately scoffed at and dismissed – until they were implemented and passed off as the boss’ big new idea. Now sure, there’s an argument for stick-to-itiveness, and that if I bided my time I could work myself up the ranks and start making the decisions. Maybe so, but I felt more burdened by the idea of seeing myself forced to pawn off the brilliant insight of an office lackey as my own because by the time it was my turn to get all the credit I was out of ideas.

I Don’t Value Security

I’m a risk taker and I always have been. I have gumption and believe that every time I get knocked down that I reemerge stronger than before. I know that there’s something comforting about having a job and knowing exactly where your next paycheck is coming from but it’s overshadowed by my own sense of excitement at starting something new and helping it grow. Having a steady job allows you to plan everything in advance and keeps you looking forward to your two-week vacation that was organized more than a year in advance, but being your own boss forces you take each day one day at time and keep your mind on what’s important right now.

Helping Others Grow

Within the hierarchy of all the companies I worked for I felt alone. I know I was supposed to emulate the work habits of those above me, but I felt like they kept their secrets of how they got to where they were under lock and key. Since striking off on my own, one of the most enjoyable aspects of my job has been mentoring and learning from those that work for me. Sure, I sign the paychecks, but in my efforts to build a successful small business it feels like it’s something we all share. It’s also very rewarding to share my expertise with my colleagues who might not have as much experience as myself.

I Did It My Way

Everyone is different, and owning your own business is incredibly challenging. It’s certainly not for the feint of heart, and before entering into something so profoundly life altering one has to really have a clear picture of who they are. I was ready to sink or swim, and learn the hard way, because I knew that if I was going to feel fulfilled I had to put myself in a work environment where I felt that I could operate under my own terms. The decision to choose the path that I did has made all the difference in my life and I never thought twice about retracing my steps.

The Nuance of NUANS

Your name can mean everything. It is what people associate with your brand and it is what will inevitably define your business in the minds of others. Therefore, it is imperative that you choose a name for your business that is original and that will stick in the minds of your target clientele. It is also important that once you have the perfect name for your business, that you protect it so that people don’t confuse your business with someone else’s. Below are some of the finer points of what one can expect when using NUANS (Newly Upgraded Automated Name Search) for registering or incorporating their business.

Not all provinces are created equal

No matter which province you live in, you will need to file a name search report. But, depending on where you live, you may have to file a name search report within your own province’s database. What NUANS actually refers to is a database for the following jurisdictions: P.E.I., Nova Scotia, New Brunswick, Ontario and Alberta, as well as the database of Canadian Federal Corporations. If you are registering your business in Quebec, for example, you don’t need to conduct a NUANS report, but you can if you wish. Doing so will give you an insight into whether or not someone has registered a business with the same, or similar, name as yours in another province, specifically those included in the NUANS database.

Don’t forget that no matter what insight you glean from any name search report that you are ultimately responsible for ensuring that your company name does not infringe on any third party rights.

The varied depths of NUANS search

Filing a NUANS report carries with it a fee to conduct the report. As a cost saving mechanism, it is possible to conduct a preliminary report at the fraction of the cost of a full report – a preliminary search costs about $0.23. However, the preliminary report only eliminates proposed names with exact matches to the names of other companies. A full NUANS report provides an even greater depth of insight by reporting company names that may be close, or could even illicit confusion, but costs significantly more and is required to register your business within the given jurisdiction. The reason a preliminary report can be beneficial is by allowing you to quickly ascertain whether or not a certain company name is available or not without the commitment of a full NUANS report. If you are satisfied with your company name, and its availability, you can then file for a full report and register your business.

Ordering a NUANS search report

Although there does exist a NUANS self-serve website, it is preferable in most cases to obtain your NUANS search report with the assistance of a NUANS registered member. The reason for this is that the self-serve website is limited to conducting NUANS reports for federal corporations. On the other hand, there are a variety of NUANS registered members available to you that are capable of not only filing the search report, but also of guiding you through the process of registering your company. 

Please visit CorporationCentre.ca for more information and to order your NUANS Report!