Starting a small escort business in Nunavut
It is relatively easy to start a small escort business in Nunavut, and as escort services are few and far between in the area you'll be ahead of the class by making your business legit by registering with the municipal and federal government. This process is especially easy if you keep your business small and designed to be run and managed by a limited number of persons. And, fortunately, several websites make it easy to procure online registration for with several departments within the Nunavut territory. 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. To learn more about the benefits of registration 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 Nunavut. Doing so means that you register your business on a municipal rather than federal level as you would if you were to see clients in other territories or provinces.
Once you've registered your business 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 the Canada Revenue Agency » Business Number Registration.
Sole proprietorship
If you choose to work under your name, you don't have to register your business. This is a smart choice if you want to keep costs and your profile to a minimum. You'll simply file your business profits/losses along with your own and hire any employees as a non-incorporated business. Details on that below.
If you choose to take on a business name, you'll have to file a Declaration of Use of a Business Name. The form contains very basic information about your business and requires a $50 filing fee. More information including downloadable instructions, forms and fees can be found at the Nunavut Department of Justice.
Partnership
In Nunavut all partnerships must register their business / name with the Nunavut Department of Justice. While it's not legally required in Canada, it's also smart to draft a Partnership Agreement. This document outlines the responsibilities of the partners—both in the managing and financial aspects of the business—that will be referred to if there is ever any conflict between the partners. Without the document, resolutions will be determined by laws described in the federal and territorial partnership acts. For more information on partnership agreements go to Canada Legal.
Registering your partnership in Nunavut is incredibly easy—all you have to do is download the instructions and forms in a Declaration of Partnership Package. This package gives you stellar instructions on how to register your partnership, which requires a $50 filing fee.
Corporation
Because of the highly intricate legal nature of starting a corporation, it is highly 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 file annual returns and register with several government departments.
To register your escort corporation you'll first have to file a Name Search and Reservation form, which makes sure that your name is honest to your business and does not conflict with other businesses already registered in Nunavut.
You can then file your Articles of Incorporation, which specifies the general physical location of the business, the number of public and private shares, the number of directors, any restrictions on the operation of the business and the incorporating officers.
You then file Notice of Office and Notice of General Directors forms, which specify the location of the business and lists the directors specifically.
This process requires a $300 filing fee.
You can find detailed information on these forms and how to register them accurately by downloading a Territorial Incorporation Package at the Nunavut Department of Justice. There you can also find all forms you'll need as a Nunavut corporation and current fees.
Step five: Register for / pay business taxes
- 1. 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. For more information go to the Canada Revenue Agency.
- Luckily, Nunavut does not have a provincial sales tax, making the region a comfortable one in which to run a small business. But as an escort service, you'll need to charge the federal Goods and Service Tax which is currently 5%.
- If you're a corporation, you'll pay both provincial and federal corporation taxes, which now stand at 4% and 11% respectively (specifically for small corporations). This tax is administered through the Canada Revenue Agency.
- 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. You'll also need to pay the 2% Nunavut Payroll tax for employees who earn more than $5000 yearly working for you. More information and a downloadable employers guide can be found at the Nunavut Department of Finance.
- If you have employees, you'll need to provide workers' compensation and enroll your business with the Workers Compensation Board the Northwest Territories and Nunavut.
For more information go to the Nunavut Department of Finance and 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. The national BizPal service is currently not offered in Nunavut, so for more information you should make yourself familiar with the Government of Nunavut » Forms and Licenses.
More information on starting a business in Nunavut
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.
