Let me begin with a deliberately provocative question:

Where did the mafia go?

To be clear, I am not accusing any government, politician or public employee of criminal activity. Most public servants are simply doing the jobs they were hired to do.

I am talking about the business model.

The old protection racket was supposedly straightforward: pay regularly, follow the rules and perhaps you would be permitted to continue operating.

Today, the language is considerably more professional. We call it taxation, licensing, registration, inspection, certification, compliance, remittance and cost recovery.

There is a form, a government logo and a convenient online payment portal.

For the small-business owner writing the cheques, however, the experience can feel remarkably familiar.

We Do Not Work for the Government—or Do We?

Business owners invest the money.

We sign the leases. We guarantee the loans. We purchase the vehicles, equipment and inventory. We hire employees, find customers, manage suppliers and accept responsibility when something goes wrong.

When the business does not have enough money, nobody guarantees the owner a paycheque.

The employees must still be paid. The suppliers expect payment. The bank collects its loan payment. The insurance company withdraws its premium. The government expects its remittances.

The owner receives whatever is left—if anything is left.

Despite carrying all this risk, business owners are also expected to operate as unpaid administrative departments for municipal, provincial and federal governments.

We collect taxes for the government.

We calculate payroll deductions.

We remit employee and employer contributions.

We maintain employment and safety records.

We determine which licences, permits and inspections apply.

We complete applications, track deadlines, file returns and retain years of documentation in case someone wants to examine it later.

Miss a deadline and there may be penalties and interest.

Misunderstand a requirement and ignorance is not a defence.

The business owner is responsible for understanding the system, even when the rules overlap, continually change or are written in language that practically requires an accountant or lawyer to interpret.

Think You Want to Start a Business? Ask AI This Question First

Before opening a business, ask an artificial-intelligence system:

“Identify every tax, employer contribution, government remittance, licence, permit, inspection, registration, environmental obligation and reporting requirement that could apply to this business.”

Do not give it only the type of business.

Provide the full picture:

Your municipality and province
Your industry and specific services
Whether you will incorporate or operate personally
Your expected annual revenue and profit
Your projected number of employees
Whether you will use employees or subcontractors
Whether you will own, lease or renovate a commercial property
The vehicles and equipment you will operate
The products you will manufacture, import, export or sell
The waste, emissions, noise or wastewater you may produce
Whether you will collect customer information
Whether you will accept online payments
Whether you will work in customers’ homes or workplaces
Whether you will operate across provincial or international borders

Do not ask only, “What is the tax rate?”

The tax rate may be the easiest part.

The real burden is the combined cost of taxes, employer contributions, government remittances, licences, premiums, filings, deadlines, bookkeeping, professional advice and penalties when something is late or incorrect.

AI can help uncover the questions, but it should not be treated as your final accountant, lawyer or regulator.

Use AI to create the checklist.

Then verify it with the Canada Revenue Agency, ServiceOntario, your municipality, your accountant, your lawyer, your insurer and any regulator governing your industry.

Do this before signing a lease.

Do it before buying equipment.

Do it before hiring anyone.

Most importantly, do it before putting your savings, home and family’s financial security at risk.

A good business idea is not enough.

What Does It Really Cost to Operate a Business?

Not every obligation described below applies to every business. That is precisely the point.

There is no single checklist for starting and operating a business. The requirements depend on what you do, where you do it, how much revenue you earn, what property and equipment you use and whether you employ other people.

The entrepreneur must understand the system well enough to know which questions to ask.

Depending on the business, the following costs and responsibilities may apply.

1. Payroll Is Much More Than an Employee’s Wage

Hiring an employee does not simply mean paying the hourly wage or salary shown in the employment agreement.

The direct employment cost may include:

Regular wages or salary
Overtime pay
Vacation pay
Public-holiday pay
Paid training time
Commissions and bonuses
Statutory and protected leaves
Group health and dental benefits
Retirement or savings-plan contributions
Payroll software and processing fees
Bookkeeping and accounting costs
Recruitment and onboarding
Background or qualification checks
Employment-law advice
Health and safety training
Personal protective equipment
Uniforms
Vehicles, tools, phones and computers
Workers’ compensation premiums
Severance, termination pay or legal costs
Administrative time required to document everything

The employer must generally calculate, deduct and remit:

Federal and provincial income tax from employees
Employee Canada Pension Plan contributions
Employer Canada Pension Plan contributions
Employee Employment Insurance premiums
Employer Employment Insurance premiums
Court-ordered garnishments or support deductions when applicable
Other authorized deductions under employment agreements or benefit programs
Holiday Pay as per provincial and Federal laws.

CPP and EI are not simply deductions from the employee’s pay. The employer generally contributes additional amounts of its own.

The employer must also determine whether bonuses, commissions, vehicle use, parking, allowances, meals, lodging, gifts, cellphones and other benefits are taxable, pensionable or insurable.

A simple employee perk can produce another payroll calculation, remittance and reporting responsibility.

The administrative obligations may include (but are not limited to):

Opening and maintaining a CRA payroll account
Determining whether a worker is an employee or an independent contractor
Collecting federal and provincial TD1 forms
Tracking hours, overtime, vacation and public holidays
Calculating deductions for every pay period
Remitting deductions and employer contributions by the assigned deadline
Issuing accurate pay statements
Maintaining payroll, vacation and time records
Reporting taxable benefits
Preparing T4 slips
Filing the annual T4 information return
Preparing T4A slips when applicable
Issuing Records of Employment
Correcting payroll errors
Preparing amended slips
Responding to CRA payroll examinations
Retaining supporting records for the required period

The CRA makes the employer responsible for deducting income tax, CPP and EI, adding applicable employer contributions, remitting the money and completing the required information returns. The employee receives the paycheque. The employer receives a miniature tax department to operate without compensation. CRA payroll requirements

Ontario employers may also face:

Employer Health Tax when the applicable remuneration and exemption rules are reached
WSIB registration
Industry-specific WSIB premium rates
Reporting of insurable earnings
Annual reconciliations
Occupational health and safety requirements
Workplace violence and harassment policies
Required employee training
First-aid requirements
Employment Standards Act record keeping

Not every item is technically a tax. WSIB charges insurance premiums. CPP and EI are statutory contributions. Employer Health Tax is a provincial payroll tax.

Those distinctions matter legally.

They matter considerably less when payroll is due Friday and the owner must find the money.

2. GST/HST Is Not Just Adding 13 % to an Invoice

GST/HST is frequently described as though the business simply adds tax to an invoice and later sends it to the government.

The actual responsibility is more complicated.

A business may need to:

Determine whether its products and services are taxable, zero-rated or exempt
Monitor the small-supplier threshold
Register for a GST/HST program account
Determine its effective registration date
Start charging tax at the correct time
Determine which provincial rate applies
Display its business and tax information correctly on invoices
Separate collected HST from operating revenue
Track GST/HST paid on eligible expenses
Determine which input tax credits can be claimed
Identify restricted or prohibited input tax credits
File returns monthly, quarterly or annually
Make instalment payments when required
Maintain qualifying invoices and supporting documentation
Reconcile GST/HST accounts
Correct errors from previous reporting periods
Address special rules for deposits, bad debts, real property, imports and exports
Determine the treatment of transactions between related corporations
Report applicable GST/HST on taxable employee benefits

For most businesses, the general small-supplier threshold is $30,000 in worldwide taxable supplies, subject to specific calculations and exceptions. If the business exceeds $30,000 in one calendar quarter, it can be required to charge GST/HST on the transaction that pushed it over the threshold and register within 29 days. Different timing rules apply when the threshold is exceeded over several consecutive quarters. CRA GST/HST registration rules

Registration may be voluntary below the threshold. That can allow eligible input tax credits, but it also creates continuing collection, filing and record-keeping responsibilities.

The owner must understand the difference between:

Taxable supplies: GST/HST is charged, and eligible input tax credits may generally be claimed.
Zero-rated supplies: Tax is charged at zero per cent, but eligible input tax credits may generally still be claimed.
Exempt supplies: GST/HST is not charged, and related input tax credits are generally unavailable.

A business may have to report and remit GST/HST on an invoice before receiving payment from the customer.

If the business should have charged HST but did not, the business may remain responsible for paying the tax from its own money.

The owner is not merely collecting tax. The owner must classify transactions, finance timing differences, maintain evidence and accept responsibility when the customer does not pay or the wrong tax treatment is used. The CRA’s GST/HST registrant guide explains the collection, calculation, reporting and remittance requirements.

3. Corporate Income Tax Has Multiple Layers

An incorporated business does not face one simple corporate tax.

Corporate taxation can involve:

Federal corporate income tax
Ontario corporate income tax
The federal small business deduction
The Ontario small business deduction
A business limit shared among associated corporations
General corporate rates on income that does not qualify for the small-business rate
Different treatment for active business income and investment income
Passive-income rules
Taxable capital gains
Dividends received or paid
Refundable corporate tax accounts
Loss carryforwards and carrybacks
Capital cost allowance on vehicles, equipment and buildings
Recapture when depreciable property is sold
Scientific research or industry-specific tax credits
Shareholder-loan rules
Tax consequences when the corporation pays a personal expense
Monthly or quarterly instalments
Interest and penalties
Annual financial statements
Year-end adjusting entries
T2 corporate income-tax returns
General Index of Financial Information reporting
Supporting schedules
Legal, bookkeeping and accounting fees
Admin fees… which include or may not include you reviewing and approving.

A qualifying Canadian-controlled private corporation may receive reduced federal and Ontario tax rates on qualifying active business income.

That does not mean every dollar earned by the corporation receives the small-business rate.

Eligibility may be affected by the nature and amount of the income, passive investment income and association with other corporations. The federal and Ontario systems also apply separate general and small-business rates. CRA corporate tax rates and Ontario corporation tax information provide the applicable framework.

Paying corporate income tax does not automatically put the remaining money into the owner’s pocket.

Money withdrawn from the corporation must be properly characterized as something such as:

Salary
Bonus
Dividend
Expense reimbursement
Loan repayment
Shareholder loan
Return of capital

Each choice can have different corporate, personal, payroll and reporting consequences.

The corporation may pay tax when it earns the money. The owner may then pay personal tax when money is withdrawn. The tax system includes integration mechanisms, but calculating and documenting the transactions frequently requires professional help.

The owner does not merely pay the tax.

The owner pays an accountant to calculate what the tax is.

4. Incorporation Creates Annual Obligations; YES.. Even If Nothing Happens

Incorporation is often promoted as a simple way to protect the owner, reduce taxes or make the business appear more established.

What is mentioned less frequently is that incorporation creates another legal entity that must be maintained, documented and administered every year.

Even if the corporation earns no money or conducts very little business, its annual obligations continue.

Maintain the Corporate Minute Book

An Ontario corporation must maintain corporate records, which can include:

Articles of incorporation and amendments
Corporate bylaws
Shareholder information
Directors’ and officers’ registers
Securities and share-transfer registers
Share certificates
Directors’ resolutions
Shareholders’ resolutions
Minutes of directors’ meetings
Minutes of shareholders’ meetings
Banking resolutions
Dividend declarations
Resolutions approving bonuses or major transactions
Changes in shareholders, directors and officers
Annual financial statements
Resolutions approving the financial statements
Records relating to significant contracts and corporate decisions

Ontario’s Business Corporations Act requires corporations to prepare and maintain records that include minutes and directors’ resolutions. Ontario Business Corporations Act

Even a corporation owned by one person should document its annual decisions. Instead of holding a formal meeting with oneself, the owner may prepare written resolutions—but the documentation must still exist.

You do not ordinarily upload the actual minute book to the Ontario government when filing the annual return.

The minute book remains with the corporation, its lawyer or its corporate-records provider. It may become extremely important during:

A government audit
A financing application
The purchase or sale of the company
A shareholder dispute
An insurance claim
An estate matter
A lawsuit
A corporate reorganization
A review of dividends or shareholder loans

If the minute book has been ignored for years, the corporation may eventually have to pay a lawyer or accountant to reconstruct its history.

That is another cost rarely included in the original business plan.

File the Ontario Annual Return

An Ontario corporation must file an annual return through the Ontario Business Registry within six months after its fiscal year-end.

The annual return confirms or updates corporate information such as:

The corporation’s legal name
Its Ontario Corporation Number
Its registered or head-office address
Its official email address
Its directors and officers
Its current corporate status
Other information maintained on the public corporate record

The annual return is not the corporation’s income-tax return.

The CRA stopped accepting Ontario annual returns in 2021. They must now be filed separately through the Ontario Business Registry.

The owner or authorized representative may need an Ontario.ca Login to access the registry. Ontario also provides an Ontario Business Account, which can be used to review transactions, file annual returns and complete provincial applications and forms. Additional services are available through the ServiceOntario online services portal.

If the corporation changes its address, directors, officers or other registered information, it may also need to file a Notice of Change instead of waiting for its next annual return.

Failing to keep the corporation properly registered can eventually result in the corporation being shown as inactive or being dissolved. This can interfere with:

Banking
Contracts
Insurance
Property ownership
Financing
Lawsuits
The sale of the business
The corporation’s general legal standing

File the T2 Corporate Income-Tax Return

The Ontario annual return is separate from the T2 corporate income-tax return.

A resident corporation generally must file a T2 return for every tax year, even if it:

Earned no income
Owes no tax
Suffered a loss
Was inactive
Qualified for a reduced corporate tax rate

A T2 return is normally due within six months after the end of the corporation’s tax year. However, the balance of tax can be due earlier—commonly two or three months after year-end, depending on the corporation’s circumstances. CRA T2 filing requirements

For Ontario corporations, the T2 generally calculates both federal and Ontario corporate income tax. Ontario corporations do not ordinarily file an entirely separate provincial corporate income-tax return. The T2 functions as the federal, provincial and territorial return except in Quebec and Alberta. CRA T2 Corporation Income Tax Return

For tax years beginning after 2023, corporations are generally required to file electronically, subject to limited exceptions.

Preparing the return may require:

Financial statements
Balance-sheet information
Income and expense reporting
General Index of Financial Information schedules
Capital cost allowance calculations
Shareholder and related-party information
Associated-corporation information
Tax-credit schedules
Loss calculations
Investment-income calculations
Dividend reporting
Shareholder-loan reporting
Instalment calculations
Supporting schedules for specialized transactions

Monthly or quarterly corporate tax instalments may also be required. The corporation can therefore be required to estimate and prepay tax before its final annual liability has been calculated.

You May Need an Accountant, But the Responsibility Is Still Yours

The law does not necessarily require every small corporation to hire an accountant.

Reality may have a different opinion.

A corporate year-end can require specialized tax knowledge, professional accounting software and familiarity with federal and provincial rules.

The corporation may need to pay for:

Monthly bookkeeping
Bank and credit-card reconciliations
Payroll reconciliation
GST/HST reconciliation
Inventory adjustments
Capital-asset schedules
Depreciation calculations
Year-end adjusting entries
Financial statements
T2 preparation and electronic filing
Corporate tax planning
Shareholder compensation planning
Dividend documentation
Ontario annual-return filing
Minute-book maintenance
Legal advice about corporate changes

An accountant may prepare and file the return, but responsibility for the accuracy of the records, payment of the taxes and completion of the filings remains with the corporation.

Incorporation therefore creates at least three distinct annual jobs:

Maintain the corporation’s internal records and minute book.
File the Ontario annual return through the Ontario Business Registry.
Prepare and file the T2 corporate income-tax return with the CRA.

That is before considering GST/HST, payroll, T4, T4A, WSIB, Employer Health Tax and industry-specific filings.

The corporation may be inactive.

The paperwork is not.

5. Property Brings Its Own Collection of Costs

Operating from a commercial property can create another layer of expenses:

Commercial property tax
The business education component of property tax
Reassessment-related increases
HST on commercial rent
Common-area maintenance charges
Property-management fees
Commercial insurance
Utility costs
Water and wastewater charges
Stormwater-related charges where applicable
Development charges
Planning fees
Building-permit fees
Zoning and minor-variance applications
Site-plan applications
Change-of-use requirements
Sign permits
Fire-code upgrades
Electrical inspections
Accessibility upgrades
Engineering drawings
Architectural drawings
Legal surveys
Environmental assessments

Some of these are taxes. Some are municipal fees. Others are private professional expenses created by the approval process.

Again, the label does not pay the bill.

A person can purchase or lease a property that appears perfectly suited to a business and then discover that the proposed use requires zoning approval, building permits, extensive renovations or an entirely different property.

Investigate before signing the lease—not after receiving the keys.

6. Municipal Licences, Permits and Inspections

Depending on the municipality and the type of business, an owner may require:

A general or industry-specific business licence
Annual licence renewals
Zoning verification
Building permits
Occupancy approval
Sign permits
Fire inspections
Electrical inspections
Public-health inspections
Food-premises inspections
Patio permits
Road-occupancy permits
Sewer-discharge permits
Water and sewer permits
Mobile-vendor licences
Vehicle-for-hire licences
Lodging or accommodation registrations
Special-event permits
Noise exemptions
Heritage approvals
Parking approvals
Police record checks
Proof of commercial insurance
Certificates from engineers, electricians or other professionals

One municipal application may require documents and approvals from several professionals.

The licence fee shown on the website may be only the entry price. The larger expense can be preparing drawings, upgrading the property, obtaining inspections, changing the insurance and paying people to navigate the process.

Every individual requirement may have a rational public purpose.

The problem is their cumulative weight.

7. Environmental Compliance Is Far More Than One Fee

Depending on its operations, a business may face environmental obligations involving:

Environmental Compliance Approvals
Environmental Activity and Sector Registry requirements
Air emissions
Noise and vibration studies
Sewage and wastewater approvals
Sewer-discharge permits
Sampling and laboratory testing
Spill-prevention and response plans
Hazardous-waste registration
Hazardous-waste manifests
Licensed waste transportation
Waste storage and disposal
Used-oil, filter and solvent disposal
Refrigerant recovery and handling
Asbestos or contaminated-material management
Excess-soil testing and tracking
Environmental site assessments
Contaminated-site remediation
Disposal and tipping fees
Producer-responsibility registration
Recycling and recovery targets
Packaging-management costs
Battery, tire and electronic-equipment recovery programs
Environmental reporting and record retention
Environmental engineering and consulting fees

Ontario’s producer-responsibility framework applies to designated materials such as tires, batteries, electrical and electronic equipment, hazardous and special products and Blue Box materials. Depending on its role, a business may face registration, reporting, collection or recovery responsibilities. Ontario producer-responsibility programs

Operations involving air, noise, waste or sewage may require an Environmental Compliance Approval. Approval can involve application fees, engineering work, studies, operating conditions and ongoing monitoring. Ontario Environmental Compliance Approvals

Environmental responsibility is necessary. Businesses should not be allowed to pollute or transfer cleanup costs to the public.

But entrepreneurs must understand these obligations before selecting a property, purchasing equipment or beginning operations.

One overlooked environmental requirement can turn an affordable business plan into an impossible one.

8. Industry-Specific Taxes and Regulatory Systems

Some industries face additional taxes, duties and licensing regimes, including but not limited to:

Federal excise duties on alcohol
Cannabis duties
Tobacco and vaping-product duties
Excise taxes on certain petroleum products
Fuel taxes
Luxury tax obligations
Insurance-premium taxes
Air Travellers Security Charge collection
Customs duties
Import tariffs
Import GST
Export reporting
Alcohol licensing and markups
Cannabis licensing and security requirements
Food-safety licensing
Agricultural levies
Municipal accommodation taxes
Vehicle-registration and commercial-plate fees

Businesses producing or selling beer, wine, spirits, cannabis, tobacco or vaping products can face licensing, security, filing and excise requirements in addition to ordinary income tax and GST/HST. The CRA maintains information about these programs through its excise taxes, duties and levies portal.

A business importing products may pay taxes, tariffs or duties before selling the inventory or recovering one dollar from a customer.

Once again, the business finances the government’s position first.

9. The Administrative Cost Nobody Sees

The most easily overlooked cost is the time and professional support required to manage these obligations.

A business may need… no sorry.. WILL need…:

A bookkeeper
A payroll provider
An accountant
A corporate lawyer
An employment lawyer
An insurance broker
An environmental consultant
An engineer
An architect
A health and safety consultant
Specialized accounting and compliance software
Document storage
Cybersecurity systems
Privacy advice
Audit and inspection preparation
Licence-renewal tracking

The owner must also spend time:

Reading government notices
Monitoring rule changes
Reviewing payroll
Approving remittances
Reconciling tax accounts
Completing applications
Gathering supporting documents
Renewing licences
Attending inspections
Responding to government questions
Correcting errors
Demonstrating that requirements were met

Those hours do not appear on a government invoice.

They remain a real cost.

Every hour spent interpreting a requirement is an hour not spent serving a customer, training an employee, finding new business or improving the company.

Taxes, Fees and Premiums Are Different, But They Leave the Same Bank Account

It is important to remain accurate.

Not every obligation described in this article is legally a tax:

CPP and EI include statutory contributions.
WSIB charges insurance premiums.
A business licence is a regulatory fee.
A building permit is an approval fee.
Producer-responsibility rules can create recovery and administrative costs.
Legal and accounting bills are private compliance expenses.
GST/HST is generally collected from customers and held for remittance rather than treated as business revenue.

Governments will correctly point out those distinctions.

The business owner will correctly point out that every one of them requires money, administration or both.

The argument is not that every tax, regulation or public protection is illegitimate.

The argument is that no single government department appears responsible for measuring the combined effect when every “reasonable” requirement lands on the same small business.

One fee may be manageable.

One filing may be manageable.

One renewal may be manageable.

One inspection may be manageable.

The owner does not receive only one.

The owner receives all of them—along with employees, customers, suppliers, loans, leases, insurance, equipment and a family waiting at home.

Death by a thousand forms is still death.

Are You Prepared to Lose Everything?

This is the question entrepreneurship courses, motivational speakers and social-media business coaches do not ask often enough:

Are you genuinely prepared to lose everything?

Incorporation does not necessarily allow an owner-director to close the doors, surrender the keys and walk away from every obligation.

Directors can be held personally liable when a corporation fails to deduct, collect, withhold or remit certain amounts—including employee income-tax deductions, CPP contributions, EI premiums and GST/HST. That liability can include the unpaid amounts, penalties and interest. Depending on the circumstances, bankruptcy, insolvency or dissolving the corporation may not make these obligations disappear.

These are not ordinary unpaid suppliers or business loans. Payroll source deductions and collected GST/HST are amounts the business was required to hold and remit. The CRA can pursue directors personally when the statutory requirements for director liability are met. Directors are expected to exercise due diligence by actively confirming that deductions are being made, returns are being filed and remittances are actually being paid—not merely assuming that the bookkeeper, accountant or office manager handled them.

Hiring an accountant does not transfer the director’s responsibility. Resigning as a director after the money is already owing does not erase what occurred while that person held office. Simply closing the company does not guarantee that the government will close its file.

Before becoming a director, understand that the title is more than a line on a corporate registration. It may attach personal responsibility to money the corporation was legally required to collect and remit.

When the business fails, the employees may find other jobs. Suppliers may write off an account. The landlord may lease the property to someone else.

The director may still receive the assessment.

That is the part of “limited liability” that does not fit neatly into the incorporation sales pitch.

Not hypothetically.

Absolutely everything can be TAKEN away from you.

Are you prepared to lose your investment, savings and credit rating?

Are you prepared to remortgage your home, personally guarantee a loan or explain to your family why the income you expected never arrived?

Are you ready to work evenings, weekends and holidays while your employees receive their pay before you receive yours?

Are you prepared to work 80 or 90 hours in a week and discover that, after every expense, you earned less than minimum wage?

Sometimes you will work for free.

Sometimes you will pay for the privilege of working.

And you get ALL the responsibility of losing everything…did I mention that?

That part rarely appears on the motivational poster.

Your Family Also Invests in the Business

The risk is not limited to money.

Business ownership can consume your time, attention, health and emotional energy. It follows you home and sits beside you at the dinner table.

A customer complaint can interrupt a family event.

A payroll shortage can keep you awake all night.

A broken vehicle, tax assessment, lawsuit, inspection, workplace injury or lost contract can affect every person who depends on you.

Your spouse may live with the financial uncertainty.

Your children may live with your absence.

Your family can experience the stress even when they have no control over the decisions causing it.

Before starting a business, have an honest conversation with the people closest to you.

Explain:

How much you plan to invest
How much you could lose
Whether your home or savings will be exposed
How long you may go without paying yourself
How many hours the business may demand
What will happen if sales are lower than expected
What debts will remain if the business closes
How the family will manage the stress

Do not sell your family only the dream.

Tell them about the possible nightmare as well.

Entrepreneurship is frequently described as freedom. It can eventually create freedom, but at first it may feel like building your own prison and volunteering to be its only employee.

Why Aren’t More People Starting Businesses?

Governments, colleges, banks and economic-development organizations frequently ask why more people are not opening businesses.

That is the wrong question.

The better question is:

What have we done to make people not want to open one?

I used to teach entrepreneurship and sales at Mohawk College. I encouraged people to pursue opportunities, create employment and build something of their own.

During the 2000s, I enthusiastically encouraged entrepreneurship. I believed that if you worked hard, served your customers and made responsible decisions, you had a reasonable opportunity to succeed.

Today, I would attach a substantial warning label to that advice.

The challenge is no longer simply whether customers want your product.

You must survive the accumulating cost of obtaining and maintaining permission to operate.

Every department sees its own requirement.

The owner experiences all of them at once.

Workers Deserve Protection, but Someone Must Pay

Employees deserve fair wages, safe workplaces and reasonable protections.

I believe that.

However, it has become politically easy to continually place additional costs and administrative responsibilities on private employers.

Where is the money supposed to come from?

A government department can receive a larger budget supported by taxation.

A private business must convince a customer to pay for every dollar it spends.

When labour, insurance, supplies, fuel, financing, taxes and compliance costs increase, the owner has limited options:

Raise prices
Reduce hours
Postpone hiring
Cancel investments
Accept less personal income
Borrow more money
Close the business

That is not political ideology.

It is arithmetic.

Every employment protection and benefit ultimately depends on the continued existence of an employer capable of paying for it.

Artificial Intelligence Can Help, but It Cannot Fix the Philosophy

AI is already helping business owners research regulations, organize records, prepare documents and manage repetitive administrative work.

I use it myself. I did write this…but it did the research on the tax I couldn’t even think of for businesses out there.

It can identify deadlines, explain complicated language, create checklists and help entrepreneurs prepare better questions for accountants and lawyers.

That is enormously valuable.

But AI should not become an excuse for governments to create even more paperwork.

Technology may help an entrepreneur complete 40 forms.

It does not explain why 40 forms were necessary.

The goal should not be to help businesses tolerate unlimited bureaucracy more efficiently. The goal should be to reduce bureaucracy so owners can focus on customers, employees, innovation and growth.

Think Twice Before Starting

I am not saying nobody should start a business.

I am saying you should think 5 times….then YOU need to think again.

Do not start because someone online told you to follow your passion.

Do not assume revenue is profit.

Do not believe being busy means you are succeeding.

Do not invest your life savings until you understand the complete operating costs, tax obligations, regulatory responsibilities and insurance requirements.

Create a worst-case projection.

Calculate what happens if sales are half of what you expect.

Determine how long you can survive without paying yourself.

Identify every debt and personal guarantee that will remain if the business fails.

Calculate the cost of accountants, lawyers, software, licences, permits and compliance—not just inventory and advertising.

Ask yourself whether you are prepared for the hours, stress, responsibility and uncertainty.

Ask your family whether they are prepared too.

Entrepreneurship can create independence, employment, pride and wealth.

It can also take your savings, health, relationships and peace of mind.

You need to understand both possibilities before deciding which risks you are prepared to accept.

My Challenge to Government

I love Canada. I love Hamilton. I value our communities, public services and quality of life.

That does not require me to pretend the system is working well for small businesses.

Governments that say they support entrepreneurship should prove it.

Do not announce another grant requiring 16 pages of paperwork.

Do not establish another advisory committee.

Do not publish another cheerful “how to start a business” webpage while adding another reporting requirement behind it.

Remove something.

Simplify something.

Create one plain-language portal that identifies the federal, provincial and municipal obligations applying to a business based on its industry, location, revenue, property and number of employees.

Require a small-business impact assessment before introducing a new tax, fee, licence or reporting obligation.

Provide reasonable transition periods when requirements change.

Measure the cumulative burden on the owner—not simply whether every department believes its own requirement is reasonable.

Every fee seems reasonable to the organization collecting it.

Every form seems simple to the department that designed it.

Every deadline seems manageable when it is the only deadline on someone’s desk.

The owner does not receive them one at a time.

The owner receives all of them.

Eventually, even the most determined entrepreneur reaches a breaking point and makes the only rational decision remaining:

Forget it.

Close it down.

When that happens, government will not have another business to regulate.

I ask you the question again… are you ready to open your business?

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