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Starting a Snow Removal Business in BC

Snow removal in British Columbia ranges from long Interior and Northern winters to short, heavy Lower Mainland storms that swamp every contractor in town. Whichever market you are in, there are a few provincial and federal steps to take before you plow for pay, and your clients will ask about insurance before they sign.

This checklist covers the BC specifics. For the general business side, see how to start a snow removal business.

General information only, not legal, tax or insurance advice. Confirm details with the BC government, the CRA, ICBC, WorkSafeBC, your accountant and your broker.

1. Register Your Business Name

According to the BC government, if you do business under your own name you do not need to register with the province. If you use a business name, you must get the name approved and then register it.

  • Name request: $30, or $100 for priority
  • Registration: $40

You can register online through the BC Business Registry or at a Service BC centre. An accountant can help you decide whether a proprietorship, partnership or corporation suits you.

2. Check Municipal Licences

Many BC municipalities require a business licence, and rules vary. Check with each municipality you plan to work in, and ask whether an inter-municipal business licence is available for the area.

3. Understand GST and PST

BC has federal GST and a separate provincial sales tax (PST), not HST.

  • GST: registration is optional for small suppliers whose taxable sales do not exceed $30,000 over four consecutive calendar quarters. Once you go over, you must register.
  • PST: the BC government's Bulletin PST 301 says "services to real property and services to most affixed machinery are not subject to PST," and that landscaping services to lawns, gardens and plants are services to real property. The bulletin does not mention snow removal by name. Contractors may still owe PST on goods they buy.

Confirm how PST applies to your services with the Ministry of Finance or an accountant.

4. Get the Right ICBC Coverage for Your Truck

In BC, basic vehicle insurance comes from ICBC. ICBC says Basic insurance includes $200,000 in third party liability coverage. Optional Extended Third Party Liability can raise that "up to $5 million."

Rate Class Matters

ICBC uses rate classes including pleasure, commuting, business and delivery. Pleasure use allows up to six days a month of commuting, business or delivery use. ICBC warns: "If you're in the wrong rate class, it could affect your coverage and leave you personally responsible for the cost of any claims."

Tell your Autoplan broker that you plow for pay so the truck is rated correctly. For more than one truck, ICBC says Fleetplan is required for more than 20 eligible vehicles, while non-fleet commercial coverage covers fewer than 20 vehicles used for business. Read ICBC and plow trucks.

5. Check Commercial Vehicle Rules

Heavier trucks bring extra rules:

  • The National Safety Code applies to commercial vehicles licensed with a gross vehicle weight of more than 5,000 kg.
  • The Commercial Vehicle Inspection Program applies to commercial vehicles and trucks with a licensed gross vehicle weight greater than 8,200 kg.

If a dump truck, loader transport or heavy plow truck is in your plans, confirm the requirements with Commercial Vehicle Safety and Enforcement.

6. Set Up WorkSafeBC

WorkSafeBC says all employers must have coverage unless exempt, and an employer includes someone who hires workers or unregistered subcontractors. Coverage is optional for the self-employed, and sole proprietors and partners can apply for Personal Coverage. Read WorkSafeBC for snow removal businesses.

7. Write Clear Contracts

Put the scope, service level or trigger depth, pricing and incident reporting in writing. Strata corporations are major clients in BC and have their own expectations. See strata snow removal contracts in BC, per push vs seasonal contracts and the snow removal contract template.

8. Keep Records From the First Storm

BC's Limitation Act sets a two year basic limitation period for civil claims, so a slip and fall claim can arrive long after the storm. Dated logs, photos and salt records are your best evidence. See site logs and documentation and BC occupiers liability and snow contractors.

9. Arrange Business Insurance Before You Sign

ICBC covers your vehicle, not your snow removal business. Coverage new contractors commonly discuss with a broker includes general liability, slip and fall coverage and equipment insurance for blades, spreaders and skid steers. See insurance for new snow removal businesses and snow plow insurance cost in BC.

Sources

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Frequently Asked Questions

Do I need to register my snow removal business in BC?

If you operate under your own name, the BC government says you do not need to register. If you use a business name, you must get name approval ($30) and register ($40).

Do I charge PST on snow removal in BC?

BC's PST 301 bulletin says services to real property are generally not subject to PST, but it does not name snow removal. Confirm with the Ministry of Finance or an accountant.

What ICBC rate class do I need for a plow truck?

ICBC warns that the wrong rate class can affect your coverage. Tell your Autoplan broker you plow for pay so they can rate the truck correctly.

How much liability does ICBC Basic include?

ICBC says Basic includes $200,000 in third party liability, and Extended Third Party Liability can raise that up to $5 million.