It is relatively easy to start a small escort business on Prince Edward Island, and as escort services are few and far between in the area, you'll be ahead of the class by registering with the municipal and federal governments. This process is especially easy if you keep your business small and designed to be run 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. More about the benefits of registering a business: Don't get busted for tax evasion: Why registering your escort business is the only option.
To make sure the name is not already in use, do a corporate name search at the Department of Justice and Public Safety » Corporate / Business Names Registry.
Keep in mind that on Prince Edward Island you may not be able to do everything online or through the mail and therefore will have to actually speak to some people when registering. And that name will have to be published in The Royal Gazette after registration. So pick a name you're comfortable using in public.
Step four: Register your business / business name
As an escort, chances are you can contain your business to operating within Prince Edward Island. 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 New Brunswick or Nova Scotia, saving time and money.
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 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 first pay a $40 fee to have a computerized name search done by the Consumer, Corporate and Insurance Services Division. Once your business name has been approved you file a Declaration for Registration of a Business Name. This registers your business for three years, when you'll have to renew the business name.
More information on the details of registering a sole proprietorship as well as all applicable forms and fees can be found at the Department of Justice and Public Safety: Business Name Registration » Sole Proprietorship.
Partnership
To form a partnership, the Department of Justice and Public Safety recommends that you draft a partnership statement outlining the duties and financial lines between the partners. While this is not legally necessary, the document protects you from legal problems within the partnership rather than resorting to the laws written in the PEI general partnership agreement. For more information on what to include in your partnership agreement and sample forms, go to Canada Legal » Partnership Agreement.
Within the first 90 days after forming your company you have to register your business name and partnership. The name first needs to be approved with a computerized name search done by the Consumer, Corporate and Insurance Services Division.
You then file a Declaration for Registration of a Business Name, which outlines the purpose of the company and all partners involved.
More information on the details of registering and managing a partnership as well as all applicable forms and fees can be found at the Department of Justice and Public Safety: Business Name Registration — Partnership.
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 purchase a corporate seal and minutes books, as well as file annual returns. Also, if you tend to conduct business in a province other than PEI, you'll have to incorporate federally and possibly in those provinces as well.
To incorporate solely in PEI, you have to get your company name approved with a computerized name search done by the Consumer, Corporate and Insurance Services Division.
You then file an Application for Incorporation and pay an initial $265 fee. The document requires knowing the proposed amount of capital stock and the public/private share information about your corporation.
More information on incorporating and applicable forms can be found at the Department of Justice and Public Safety: Incorporation of a Company.
Step five: Register for / pay business taxes
- If you are a sole proprietorship or partnership, you'll 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 taxes.
- As an escort, you'll need to charge provincial revenue tax (10%) and federal Goods and Service Tax (5%). More information can be found at the Department of Finance and Municipal Affairs.
- If you're a corporation, you'll pay both provincial and federal corporation taxes, which now stand at 1% 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.
- If you have employees, you'll need to provide workers' compensation and enroll your business with the Workers Compensation Board of PEI.
For more information go to the PEI Department of Finance and Municipal Affairs.
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 Prince Edward Island.
More information on starting a business in Prince Edward Island
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.
