Greetigns, I would really appreciate feedback from anyone who takes the time to read this post. I''ve recently decided to take the so called "plunge" and start my own software business. At this point in time, I''m trying to gather as much information as possible from as many sources as possible. Here''s the current situation (with as much information as I''m willing to divulge at the moment). I would really love to get in to game development, but I don''t see that as a viable option at the moment. As an alternative, I''ve been working on some web based software over the last 6 odd months or so. The plan is to earn sufficient funds through this other venture so that I can spend a great deal of my time on game dev. The first version of my product is approaching completion. I expect to have an initial release within 3 to 4 months. Now I''ve decided to self-publish/promote the product and am prepared to make the financial investment necessary. At this point in time, I haven''t officially registered my business. I had a few questions regarding this process (note that Canadian laws apply). I have the option of registering the business as a sole proprietorship, or I can choose to incorporate. I''ve read some of the pro/cons of each (liability issues and such), but I would like any other comments that some of you may have. I will be speaking with a lawyer shortly, but again, I would like as much information as possible going in. The other question I had was regarding insurance. What types of business insurance should I worry about? My startup plan will basically rely on outsourcing the web hosting, as such, the physical server will not be on my premises. Do I need to look into obtaining insurance to cover losses due to say, a fire, at the physical server location? (Note: the server is not mine, nor is the remote location). Also, is there insurance which will cover you in the case of fraud (ie e-commerce for instance)? Insurance for loss of revenue due to "hacking"? I am fairly naive when it comes to these aspects of running a business, so again, any feedback is appreciated. The post is becoming quite long, so I''ll cut it off here. Thanks for taking the time to read it. MJB

Hmm, not exactly many replies to this, is there....

Well, I too have "taken the plunge" with music out-sourcing. I was also stuck on the incorporate/sole trader (as they call them in the UK) and I was told a simple piece of advice - if I need to EMPLOY people, then I had to be incorporated (or Limited they call it here, short for Limited Liability Company). If not, then I might as well save myself the cash and be a sole trader. After all, you can always hire people as a sole trader, providing it is a sub-contract, not an employment. That way, you don''t get stung for pensions, tax, etc... I also find that by keeping a small sideline going (I teach piano/sax privately) it helps keep body and soul together whilst I plan my companies'' world domination.....

Hope it helps. Good luck with your upcoming business!!

Barry Ryerson
Head of Audio Development
Ryerson Sound Solutions
URL:http://www.ryerson-sound.com

I have here the "Montreal Entrepreneur''s Guidebook", a very thick paperback volume published by Youth Employment Services (http://www.yesmtl.org/) with support from the Dobson and Zeller foundations (associated with McGill University). Although it''s made in QC, the contents (amazingly, English only)is really more about canadian corporations as a whole with only a few paragraphs about specific QC legislation. I wouldn''t be surprised there is a comparable initiative in T-O; check your local university management faculties. Since this is heavily backed by Canada''s Human Resources Development Agency, I suggest you get a copy before Paul Martin cuts it to pieces...

-cb

Thanks for the replies. I was beginning to think this thread would disappear without any responses.

For now, I''ve opted to go the "sole proprietor" route and will incorporate if and when it becomes necessary.

cbenoi1 - You are probably right, there should be a similar initiative in the Toronto area. I''m definitely going to look into it.

Anyone else have any comments/advice?

I''m pretty sure that the only difference between sole propietorship and an incorporation is protection from liability. If you avoid borrowing lots of money and you don''t think that you''ll be sued, then I would not recommend incorporation. You must register your business name, though. I think it costs $10 to search to see if your name is taken and $70 to actually register your name. I''ve never actually done it myself, though, I just know someone who has.

The official zorx website

I havn''t started a small development company but I guess it''s not much different from starting a more traditional company. Right now I''ve started my own business officially, an online alternative gaming magazine, launch date the 29th of December.

Anyways I was really uncertain in the beginning, what I put a lot of effort in was developing a business plan, marketing plan and other various plans. The reason for this is to have your goals set up and be clear about them.

Anyways a couple of good sources for small businesses are:

http://www.entrepreneur.com/
http://www.inc.com/home/
http://www.fortune.com/fortune/smallbusiness/

And here are some Canadian tax-info for small businesses
http://www.ccra-adrc.gc.ca/tax/business/menu-e.html

Hope this helps and good luck to you!