Starting a small escort business in Northwest Territories
It is relatively easy to start a small escort business in the Northwest Territories, and as escort services are few and far between in the area, you'll be ahead of the class by making your business legit with the Canadian government. This is especially easy and affordable 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. As for the wisdom of registering your small escort business, please 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
As an escort, chances are you can contain your business to operating within the NWT. Doing so means that you register your business on a municipal rather than federal level as you would if you were to, say, see clients in Alberta or British Columbia, saving you some time and money.
Sole proprietorship / partnership
All businesses in the Northwest Territories must register their business name with a Business Name Registration Form sent to the NWT Department of Justice. While most provinces only require this if using a DBA name, all individuals conducting business in the NWT must do so.
To reserve your business name, you must first make sure that the name is not already in use in your area. The government doesn't regulate this, so it's a smart idea to do a simple internet search to make sure you're doing business under an independent name. You can also file a NUANS (Newly Upgrade Automatic Name Search) report, which will compare your name nationally with others that are registered. There are many government-approved services that can do this for you, or you can do so through Corporations Canada. For more information and links to services, go to the Government of Canada » NUANS.
You can then file a Declaration of Use of Business Name Form 2 and send it along with a $50 filing fee to the Corporate Registries Department.
If you are using your own name or the collective names of the partners as your business name, you do not have to continue with further registration.
If you use a DBA name, however, you'll have to file a Partnership Registration and pay a $50 filing fee. If you're a sole proprietorship you'll use the same form, and simply put yourself as the sole ‘partner'. The form contains basic information about ownership and operation of the company.
Once you've registered your business you can get your BN (Business Number) that will make it easier to apply for permits, pay taxes and exchange business information with several government offices. For more information on who needs to apply and what the BN is useful for, go to Canada Revenue Agency — Business Number Registration.
Corporation
To register your escort corporation you'll need to file several things with the NWT Department of Justice:
- Articles of Incorporation: outlines the purpose of the company, the details of the shares allotted, the number of incorporators and any restrictions that the company must function under.
- Notice of Registered Office: files the physical location of the company.
- Notice of Directors: specifies the directors of the company and their personal addresses.
Filing this paperwork costs $300 plus name search fees.
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.
For answers to frequently asked questions go the NWT Department of Justice.
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.
- If you're a corporation, you'll pay both municipal and federal corporation taxes, which now stand at 4% and 11% respectively (for corporations who make less than $400,000 yearly). This tax is administered through the Canada Revenue Agency, but updated and relevant information is best found at the NWT Department of Finance.
- 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 Worker's Safety and Compensation Commission.
- As an escort providing a service, you will have to file for the federal GST (Goods and Service Tax) on to your service, which currently stands at 5%. For more information consult a business lawyer or go to the Canada Revenue Agency. There is no provincial sales tax in the Northwest Territories.
For more information and answers to common tax questions, go to the Northwest Territories Department of Finance or 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 Northwest Territories.
More information on starting a business in Northwest Territories
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.
