How to start a business in British Columbia (BC) in 9 steps

Are you thinking about launching a business in beautiful British Columbia? Whether you’re dreaming of opening a café in Victoria or launching a consulting firm in Vancouver, starting a business here is an exciting adventure, but also one that comes with legal and administrative responsibilities.

While your idea might be solid, turning it into a real business requires more than passion. You’ll need to understand the rules that govern how businesses operate in BC, things like registration, taxes, licences, and choosing the right legal structure. As a business owner, it’s your responsibility to be informed and ensure your venture complies with both provincial and federal regulations.

To make your journey smoother, the corporate tax accountants at T2inc.ca have put together a clear, practical guide to starting a small business in British Columbia—one step at a time. Whether you're just getting started or refining your business setup, this guide will help you understand the essential requirements and make confident, informed decisions along the way.

Note: These steps don’t necessarily need to be completed in order. We recommend reviewing the full list first and then deciding how to proceed based on your business type, location, finances, and goals.

1. Validate your business idea before starting a business in BC

Every successful business starts with a well-defined idea. Ideally, it solves a real problem, meets an existing need, or offers something that clearly sets it apart from the competition. Before you invest time or money in starting your business in British Columbia, it’s important to validate your concept and make sure it’s grounded in reality.

At this step, some entrepreneurs already know exactly what kind of business they want to start. Others are simply driven by the desire to work for themselves, but still need to figure out what that business will be. No matter where you stand, the first step is to shape an idea that is both viable and aligned with your strengths.

Here are a few tips to get you going in the right direction:

• Choose something that plays to your strengths: Pick an idea that reflects your background, interests, or professional experience. People are more likely to trust a business when it’s led by someone with credibility and a genuine understanding of the field.
• Define your target audience: Who are you trying to serve? Think about their age, income level, location, values, and buying habits. The better you understand your ideal customer, the easier it becomes to shape an offer that resonates, and sells.
• Research your competition: Look at other businesses in your niche. What are they doing well? Where are the gaps? Spotting weaknesses in competitors’ offers can help you refine your positioning.
• Explore market demand: Use tools like Google Trends or keyword research platforms to find out how often people search for products or services like yours. A healthy search volume or strong local interest often signals a viable business opportunity.
• Test your idea in the real world: Talk to people in your target market. Ask for feedback, run surveys, or offer your product or service at a discount in exchange for honest reviews. This early feedback is invaluable, it allows you to fine-tune your concept and build confidence before launching.

2. Build your business plan and estimate your startup costs

Once you’ve validated your business idea, it’s time to put it down on paper. A business plan is more than just a document. It’s a roadmap that clarifies your strategy, helps you anticipate challenges, and communicates your vision to lenders, partners, or investors.

Start with a clear description of your business: What problem do you solve? Who are your customers? What makes your offer different? Then outline your goals and explain how you’ll reach them through marketing, operations, and day-to-day management. As you map out your operations, think about where and how you’ll offer your product or service. Will you sell online, in person, or both? Will you work alone or build a team? These decisions will influence your resource needs, legal structure, and costs.

Once the operational side is mapped out, turn your attention to the numbers. Estimate your startup costs, like incorporation, equipment, marketing, insurance, and website expenses. Then outline your expected monthly expenses, such as rent, internet, subscriptions, or salaries. With those figures in hand, assess your funding needs. Will you self-finance, or apply for a loan, line of credit, or grant? Explore programs like the Canada Small Business Financing Program, BDC financing, and provincial resources available in BC or Quebec.

Finally, build basic financial projections. Estimate your revenue for the first year, your breakeven point, and your anticipated cash flow. Even rough numbers can help you test your idea’s financial viability and support future funding requests.

3. Choose a business name and location

Choosing a business name is often one of the first creative steps entrepreneurs get excited about, and for good reason. Your name sets the tone for your brand, helps customers recognize you, and appears on almost every official document you’ll file. When picking a name, make sure it’s unique, easy to remember, and relevant to your industry. Don’t forget to check online availability too. Ideally, your name should be free on social media platforms and as a domain name.

Before you commit, verify that your business name isn’t already taken or protected. You can do this by:

• Running a name search via the BC Registries and Online Services if you're registering provincially;
• Using the NUANS database if you’re incorporating federally;
• Searching trademarks on the Canadian Intellectual Property Office (CIPO) website.

Keep in mind that if your name is too similar to another registered business or trademark, you could face legal issues, even if you didn’t intend to copy it.

If you plan to expand to other provinces, it’s a good idea to check name availability outside of BC. And if you don’t want to use a name at all, you can opt for a numbered company when incorporating, although this is less effective for branding and marketing purposes.

When it comes to location, it doesn’t have to be physical. Many businesses today are entirely online. However, if you do plan to operate from a storefront, office, or workshop, make sure your business address complies with zoning laws and other municipal regulations before signing a lease. You’ll also need an address in BC for most official registrations.

4. Choose the right legal structure for your business in BC

Before you can register your business, you’ll need to choose a legal structure. This choice affects everything from your tax obligations to your liability, financing options, and how much paperwork you’ll deal with. In British Columbia, the most common structures are sole proprietorships, partnerships, and corporations.

Each structure has its pros and cons, so it’s important to consider your goals, your risk tolerance, and your plans for growth.

Sole proprietorship

This is the simplest and most affordable way to start a business in BC. As a sole proprietor, you are the business, meaning all profits are yours, but so are all the risks.

You’ll report your business income on your personal tax return, and you’ll be taxed at your personal income tax rate. While this can be advantageous if your income is modest, it could result in higher taxes as your business grows. You’re also personally liable for any debts or legal issues, which means your personal assets are at risk if the business runs into trouble.

On the upside, you can always decide to incorporate later as your business expands.

Partnership

In a general partnership, two or more people share ownership, profits, and responsibilities. It’s a good option if you want to split startup costs and combine skills with a trusted business partner.

However, partnerships require trust and clear communication. Each partner is personally responsible for the business’s debts and legal liabilities, even if the issue was caused by the other person. Drafting a formal partnership agreement is highly recommended.

Corporation

Incorporating your business creates a separate legal entity, which limits your personal liability. This means your personal finances are generally protected from business debts or legal claims.

Incorporation also opens the door to several advantages: better access to financing, the ability to retain profits in the company, and potentially lower business tax rate in BC, especially if your business qualifies for the small business deduction. It also makes it easier to bring in shareholders or sell the business later on.

While incorporation involves more administrative steps and separate tax filings, it’s often a worthwhile investment, particularly as your business grows. In fact, many entrepreneurs start as sole proprietors and choose to incorporate later to take advantage of the flexibility, protection, and tax planning opportunities that come with being a corporation.

5. Register or incorporate your business with the BC Business Registry

Depending on the type of structure you have chosen, you will need to register or incorporate your business in BC. Let’s take a look at the most important points related to each option.

How to register a business in British Columbia

If you’re starting as a sole proprietor or in a general partnership, you must register your business name through the BC Business Registry. This allows you to operate under a name other than your own and makes your business officially recognized in British Columbia. Registration is a simple process: you’ll provide your name, business address, and a short description of your activities. Once approved, your business name must appear on all contracts and invoices.

Keep in mind, your registration is only valid in BC. If you plan to operate in another province, like Quebec, you’ll need to register with the appropriate authority (for example, the Registraire des entreprises du Québec to obtain a Quebec business number (NEQ))

Finally, you’ll need to apply for a Business Number (BN) with the Canada Revenue Agency (CRA) to access federal tax accounts (e.g., GST/HST, payroll). You can register through the Business Registration Online portal, or ask a professional to help.

For a step-by-step guide on how to register a sole proprietorship or partnership in British Columbia, be sure to read our full article on how to register a business in BC.

How to incorporate a business in British Columbia

If you’ve chosen to incorporate, the next step is to complete the official incorporation process, either provincially, through the BC Corporate Registry, or federally, via Corporations Canada. Provincial incorporation is often sufficient if you plan to operate mainly in British Columbia, while federal incorporation is useful if you want exclusive name protection across Canada or plan to expand outside the province.

When you incorporate your business in British Columbia, you’ll need to reserve and approve a business name (unless you choose a numbered company), file your Articles of Incorporation, designate a registered office address in the province, and pay the applicable government fees. Once completed, your business becomes a separate legal entity, which limits your personal liability. You’ll automatically receive a 9-digit BN from the CRA, which links your corporation to key tax accounts:

• Corporate income tax (T2),
• GST/HST (if applicable),
• Payroll deductions (if you hire employees).

You can complete most steps online through the BC Services platform, or work with a provider like T2inc.ca to simplify the incorporation process and ensure full compliance from day one.

6. Obtain required business licences and permits

Before you begin operating, make sure your business complies with all necessary regulations. Depending on your location and industry, you may need to secure specific licences, permits, or certifications at the municipal, provincial, or federal level.

The easiest way to identify your obligations is by using BizPaL, a free online tool that provides a customized list of the permits and licences required for your business based on your activity and location.

This may include:

• A municipal business licence;

• Sector-specific permits (e.g. food service, construction, childcare);

• Zoning approval, if operating from a physical location;

• Professional certifications, if you work in a regulated field (e.g. health care, finance, engineering).

Requirements vary depending on what you do and where you operate. Taking the time to verify everything up front helps you avoid costly delays, penalties, or worse, being forced to shut down.

7. Set up your federal and provincial tax accounts

Once your business is registered or incorporated, it’s time to set up the tax accounts you’ll need to operate legally in Canada. These accounts are linked to your Business Number (BN) issued by the Canada Revenue Agency (CRA) and are required to meet your federal and provincial tax obligations.

Here are the main types of accounts to consider:

• GST/HST account: If your business earns more than $30,000 in gross revenue over four consecutive calendar quarters, you are required to register for a Goods and Services Tax (GST)/Harmonized Sales Tax (HST) account. Even if you earn less, registering voluntarily allows you to claim input tax credits on business expenses, which can reduce your net tax owing.
• Payroll deductions account: If you plan to hire employees, you must open a payroll deductions account. This account is used to remit source deductions such as income tax, Employment Insurance (EI), and Canada Pension Plan (CPP) contributions. You’ll also need to set up payroll systems to calculate and remit these amounts on a regular basis.
• Corporate income tax account: Incorporated businesses are required to file a T2 corporate income tax return every year, even if there is no income or activity. When you incorporate, the CRA automatically opens a corporate tax account linked to your BN.
• Provincial tax accounts (if applicable): In British Columbia, businesses that sell taxable goods or certain services must register to collect Provincial Sales Tax (PST). This is separate from GST and requires registration with the BC Ministry of Finance. You may also need to register for WorkSafeBC if you have employees or operate in certain industries.

8. Open a business bank account and implement your bookkeeping system

Once your business is registered, it’s important to keep your finances organized. A separate business bank account helps track expenses, manage income, and simplify your tax reporting, especially if your business is incorporated, where it’s legally required.

Regardless of your structure, you’ll also need to maintain proper books. Whether you use software or work with a bookkeeper, setting up a system early makes it easier to manage payments, claim deductions, and meet your tax obligations.

9. Explore financing and growth opportunities

Once your business is up and running, it’s time to plan for growth, and how to finance it. Even if you’re starting small, building a financial strategy early on can help you scale more efficiently and seize new opportunities with confidence.

Explore financing options

Not every business needs outside funding, but if your startup costs are high or you want to accelerate your launch, financing can make a real difference. Common options include:

• Personal savings or family loans – Simple and accessible, but often limited.

• Bank loans or lines of credit – Ideal if you have a strong plan and good credit.

• Government programs and grants – Initiatives like the Canada Small Business Financing Program (CSBFP) can reduce risk and improve access to capital.

• BDC financing – The Business Development Bank of Canada supports startups with tailored loans and advisory services.

Beyond financing, it’s worth building a strong financial foundation to support long-term growth. Create realistic projections, monitor your cash flow closely, and reinvest profits strategically, whether in marketing, hiring, or technology. If you plan to attract investors or expand beyond BC, maintaining clear and accurate financial records will strengthen your credibility and open new doors.

Ready to starting a business in BC? Let T2inc.ca guide you every step of the way

Starting a business in British Columbia is an exciting journey—but it also comes with important decisions, legal requirements, and financial obligations. By breaking the process down into clear steps, you can move forward with confidence and build a solid foundation for long-term success.

Our team of corporate tax specialists supports small business owners across BC and beyond with smart, affordable solutions, from incorporation to bookkeeping and T2 filings. Contact T2inc.ca today for a free quote and take the first step with confidence.