Starting a small escort business in Québec

It is relatively easy to start and register a small escort business in the Province of Québec—especially if your business is designed to be easily run and managed by a small 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 and file business reports and taxes yearly.

Also be aware that, while most forms are available in English, all forms must be filed in French. And while some are available online, most have to be filed in person with the Registraire des Enterprises in Montreal or Québec City, or sent directly to the Registraire des enterprises, Direction des enterprises, P.O. Box 1364, Québec City, Québec, G1K 9B3.

To learn why it’s vitally important to register your business, refer to our article Don’t get busted for tax evasion: Why registering your escort business is the only option.

Step one: Define and describe your business

There are several kinds of business structures applicable for running an escort business, and picking the right one for you is important. For example, someone working independently as an escort and someone running an agency would utilize two different business structures. Ask yourself these questions and your business model will start to take shape for you.

  • How do I define my work? What is it, in essence, that I serve? Do I supply the connections between escorts and clients, or am I myself the escort and am providing the company?
  • Am I the only one who will benefit monetarily from my business? If not, who else will and why are they collecting profits?
  • Am I the only one who will manage my business—schedule clients, hire drivers etc.? If not, will it be another owner doing this or someone I employ?
  • Will I be hiring regular employees to take calls, set up appointments, manage any office work on a regular basis etc., or will I maintain my business by myself?
  • Will I be hiring independent consultants (freelance escorts) and, if so, how do I expect to manage and pay them?
  • Who will fund costs such as buying advertisements in newspapers, renting an office or the cost of running a website?
  • Would I ever want to brand my business name or logo?
  • Who will be responsible for my business if I run into debt? Is this just me?
  • Will I ever want to sell my business?

Another step in articulating your business is to write a one-sentence summary of what the business actually does. As an escort you’re registering a service you provide, rather than a product that you sell, and this service will need to be articulated on various forms and in marketing materials. Make this unique to you from the questions you’ve answered above, along the lines of “We provide company to our clients in a social setting”.

For information on what terms you legally can and cannot use, refer to our article The fine legal line between escort and prostitute: some strategies for an escort to stay out of trouble.

Step two: Choose your business structure

Once you have a handle of what your business is and how it will be run, it’s time to pick out a business structure. Below are quick definitions of the three business models that apply best to a small escorting service in Canada: a sole proprietorshipa general partnership and a corporation.

  • Sole Proprietorship: This is the simplest business structure, with a minimal amount of paperwork filing. One person owns and operates the business, and is responsible for all profits and losses. If you are just starting out and/or will be managing your company alone, this is what you want.
  • General Partnership: This retains the responsibility of a sole proprietorship, but is owned by two or more persons, called partners. In a general partnership, all partners share equal responsibility regarding funding and managing the business, as well as responsibility should the business run into financial trouble. If you have a small group of persons whose strengths will manage arranging and seeing clients, this is what you should choose. However, as you are equally responsible for losses, it can be a risky investment. Within the escort service world, it makes more sense to join into a general partnership than a limited partnership, where the financial / legal responsibility of the company is not shared equally.
  • Corporation: The business is a legal entity owned by shareholders and run by its directors (which will, most likely, be you). While the shareholders may invest money and collect in profits, they are not responsible for losses or claiming personal bankruptcy if the business declares such. However, if the directors are judged to be personally at fault, they may be held responsible for the unaccounted amount. This model requires a good amount of paperwork and applicable fees, and most likely the addition of an accountant and business lawyer as well. A corporation is the way to go if you have been in business for a few years, juggle many consultants and clients, and want to expand and legitimize your work on a higher platform. If that’s not you, don’t become a corporation.

For more information on what these mean specifically in the escorting world, and the processes for each, please refer to our articles:

For more information on these entities within Canada, visit Canada Business » Government Services for Entrepreneurs.

Step three: Create your name

Let’s pretend your name is “Jane Doe”. First, decide whether you simply want to call your business your name (“Jane Doe”) or your name and service (“Jane Doe Escort Service”). If you use these names as a sole proprietorship or partnership, you are not required to register your business. However, if you choose to take on a name such as “Jane’s Escort Service”, you are considered to be functioning under a business name (also called a Doing Business As or DBA name) and will have to register it as such. Corporations, which are their own legal entities, must register their business under a business name.

If you’re required to or simply want to take on a business name, have fun creating it. Do you want to be flirty and funny? Try “Jane Doe: The Company Company”. Feel like being a little more discreet and want to stay out of the limelight? Try something demure, like “Jane’s Social Consulting”. Your name can be as simple or as flashy as you’d like, just make sure it’s honest to what you want your business to be. Do you want to push the envelope of acceptability or maintain a low profile?

Make sure the name is not already being used in Québec by searching the enterprise register at the Québec Registraire des Enterprises. Also, remember that in more conservative communities your business may be more publicly scrutinized. Consider this when choosing to take on a business name.

Step four: Register your business / business name

Registering your business will give you a 10-digit Québec Enterprise Number, or NEQ, which simplifies business you may have with a large variety of governmental agencies. More information can be found at the Registraire des Enterprises Québec » NEQ.

The Province of Québec is currently working to make many of these filings and forms available online. For current information, visit the Registraire des Enterprises Québec or refer to the Registration Procedures for Each Legal Form.

Sole proprietorship

In Québec you are not required to register your sole proprietorship escort business if you conduct business under your own name. But if you take on a business name, you’ll have to file a Declaration of Registration Form within sixty days of operating. You can file the form at one of the two offices of Services Québec for a nominal fee.

You may also choose to register your business to obtain your NEQ, which may simplify business dealings with other organizations down the road.

Partnership

In Québec you are required to register your partnership escort business within sixty days of operation. To do so you’ll have to file a Declaration of Registration Form. You can file the form at one of the two offices of Services Québec for a nominal fee.

Corporation

To register your corporation in Québec, you’ll need to obtain a Name Search Report, an Articles of Incorporation form and either an Initial Declaration or Notice Establishing the Head Office and List of Directors.

Because of the highly intricate legal nature of starting a corporation and the various ways one can incorporate in Québec, it is highly recommended that you seek the advice of a business lawyer and accountant.

More information on incorporating in Québec can be found at the Registraire des Enterprises Québec » Incorporating a Business Corporation.

Because of the highly intricate legal nature of starting a corporation, it is highly recommended that you seek the advice of a business lawyer and accountant.

Step five: Register for / pay business taxes

Along with paying taxes on your business income, all registered business structures must update their business information by filing an annual return beginning a full year after registration. More information on filing dates and forms can be found at the Registraire de Enterprises Québec.

As an escort, there are really only two taxes you’ll be required to pay as a business, and even then only if you over $30,000 a year for on the service you supply for your clients.

  1. Goods and Service Tax (GST): All businesses that make a profit by supplying a service in Canada must pay this federal tax. Most businesses pass this tax on to their clients. In the escort industry, you may not specifically be taxing your clients for your service, but creating your fees with this tax in mind is something to consider. More information and a downloadable guide can be found at Revenu Québec.
  2. Québec Sales Tax (QST): The Québec Sales Tax is currently running at 7.5% of the cost of the service you’re providing. For more information and online registration, go to Revenu Québec.

Step six: Get necessary licenses and permits

There is no escort license or one “general business license” in Québec. But as an escort you’ll have to consider where you are meeting your clients. If you are seeing clients somewhere other than an office or storefront, which you will most likely be doing, you’ll have to obtain a Mobile Shop Merchant’s Permit.

More information on starting a business in Québec

Please note: Skipthegames.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.