Starting a small escort business in Newfoundland and Labrador
It is relatively easy to start a small escort business in Newfoundland and Labrador, with many incentives for small businesses. This process is especially easy if you keep your business small and designed to be run and managed by a limited number of persons. When starting your escort business, you'll want clearly define what your business does, who manages it and who receives profits. The simpler the layout, the easier it will be to register the company and file business reports and taxes yearly. Refer to our article Don't get busted for tax evasion: Why registering your escort business is the only option.
Step four: Register your business / business name
Sole proprietorship / partnership
Newfoundland and Labrador is the only province in Canada that does not require sole proprietorships or partnership to register their business name, saving you some time and money. This basically means that all your financial business dealings—and the reporting of profits and losses—are taken care of along with your personal reports. You will still be required to pay some business taxes / employers fees (details below), but they will all be connected to you personally.
Depending on how many government offices you deal with on a regular basis, you may want to sign up for a Canada BN—business number. This number helps communication between offices to be as efficient and clear as possible. For more information on obtaining a BN, go to the Canada Revenue Agency » Business Number Registration.
Corporation
Because of the highly intricate nature of registering a corporation it is strongly recommended that you seek advice / register through a business lawyer, especially as fees, dues dates and forms often change and are not always available online. As well as the basic filing and fees involved in initial incorporation, you'll have to file annual returns and have the specific shares and restrictions outlined along with your incorporating shareholders.
Incorporation is done by filing your Articles of Incorporation with the Registry of Companies at the Newfoundland and Labrador Department of Government Services, as well as an initial filing fee of $300.
Once you've registered your corporation you can get your federal BN (Business Number) that will make it easier to register for business taxes and exchange business information between government offices. For more information on obtaining a BN, go to Canada Revenue Agency » Business Number Registration.
Step five: Register for / pay business taxes
- If you are a sole proprietorship or partnership, you'll have to report your self-employment income on your T-1 General return. Your choice of when your business year ends affects your tax bracket, so it's smart to do some research and consult with a professional when becoming familiar with self-employment and small-business taxes. More information can be found at the Canada Revenue Agency.
- As an escort service, you'll have to pay / pass on the 13% HST taxes that combines provincial and federal goods and services taxes, regulated by the Canada Revenue Agency.
- If you're a corporation, you'll pay both provincial and federal corporation taxes, which total 4% specifically for small businesses, making Newfoundland and Labrador one of the best provinces in which to do business. This tax is administered through the Canada Revenue Agency and more information can be found at the Newfoundland and Labrador Department of Finance.
- Newfoundland and Labrador has a 2% Health and Post Secondary Education Tax (Payroll Tax). Fortunately there is a very high exemption ceiling for small businesses, so you will most likely not have to pay this tax.
- If you have employees, you'll need to report and deduct payroll expenses at the Canada Revenue Agency. This contributes towards employment insurance, the Canadian pension plan and income tax.
- If you have employees, you'll need to provide workers' compensation and enroll your business with the Newfoundland and Labrador Workplace Health, Safety and Compensation Commission.
For more information on taxation in Newfoundland and Labrador, go to the Government of Newfoundland and Labrador » Doing Business Here.
For federal information on business taxes, go to the Canada Revenue Agency.
Step six: Get necessary licenses and permits
You may be required within your municipality to have additional licenses or permits on top of your basic business registration, depending on how you're running your business specifically within that locality. For a personalized guide on which licenses and permits you'll need to obtain, go to the BizPal Service for Newfoundland and Labrador.
More information on starting a business in Newfoundland and Labrador
Find out how to register an escort business in each state of the USA and by province in Canada.
Please note: Dating.com is not a legal service, nor are we tax advisors or accountants. We do offer you what we consider our best advice, but if at all in doubt, please consult a professional.
