To register a business in Ontario is quite an adventure. Whether it be going full time with your freelancing skills or opening up your dream shop, making it official by registering the business is one giant leap. But let’s be real-the process might feel somewhat overwhelming if you’re doing it for the very first time.
Take Alex Turno, for example. Alex had a natural eye for photography, but he knew he would need to push himself creatively to work with bigger clients and grow professionally. Setting up a sole proprietorship business was what seemed perfect for him because it was very inexpensive and effortless to file and gave him the credibility he needed along with opportunities for growth, and success.
But Alex wasn’t sure where to begin. Does that sound familiar? If you’re in the same boat, don’t worry. These 10 practical tips will guide you step-by-step so you can confidently “register a business in Ontario” and start chasing your dreams—just like Alex did.
If Alex can do it, so can you! Here’s how:
1. Understand Ontario Business Structures
The first step to register a business in Ontario is figuring out which business structure works best for you. Here are the main options:
- Sole Proprietorships: Perfect for freelancers and other small businesses, extremely simple and affordable to set up.
- Partnerships: Great if two or more people want to operate the business together.
- Corporation: Ideal for those who need personal liability protection, plan to grow or seek investors
For many entrepreneurs, a sole proprietorship is the easiest to start due to fewer rules and less cost in maintenance.
2. Decide If a Sole Proprietorship Is Right for You
While many small business owners prefer to start a sole proprietorship, incorporation may be more suitable in some instances. If you ask yourself:
- Do I need personal liability protection?
- Am I seeking to bring in investors or expand significantly?
If the answer is yes, you might want to consider incorporating your business. But for entrepreneurs who run small businesses, a sole proprietorship may make much more sense – at least to get things going.
3. Choose a Unique Name Describing Your Business
Naming your business is kind of a huge deal if you want to register a business in Ontario since it’s really how people are going to remember and identify you. If you’re a sole proprietor, you can either operate under your own name or create something unique that will stick in people’s minds. Here are things to keep in mind:
- Make it simple, and easy to spell.
- Avoid misleading terms.
- Make sure it doesn’t clash with existing businesses.
- Make it distinctive and descriptive.
For example– Emma’s Flower Shop.
A great name can set the tone for your brand, be it a sole proprietorship or larger-scale operation.
4. Name Search and Approval
If you choose a name that isn’t your personal name, you have to take the time to ensure that it’s available. If you are an incorporated business, you will have to get a Nuans Report to confirm the name is unique. A sole proprietorship has less of a process, but one that’s just as important.
Don’t need the hassle? Let IncorpPro take care of your Nuans Report while you focus on running your business.
5. Obtain a Business Number and CRA Accounts
Once your business name is set, it’s time to get a Business Number from the Canada Revenue Agency. You also need to register for CRA accounts like:
- HST/GST – if your annual earnings exceed 30,000 dollars.
- Payroll Accounts – if you intend to hire employees.
- Import/Export Numbers (where applicable).
Even small sole proprietorships have something to gain by registering properly with the CRA, as it keeps you in compliance and ready for growth.
6. Register a Business in Ontario online or in person
Ontario makes it easy to register your business. Here’s how:
- Use IncorpPro’s online portal for a seamless and swift process.
- You can also visit a ServiceOntario location for in-person assistance if that is what you prefer.
For the majority of sole proprietorships, the process is straightforward and affordable. You will just need to have your approved name ready, along with personal information and a mode of payment.
7. Verify Licenses and Zoning Regulations
Every type of business has its licensing requirements or zoning. Example:
- Construction/ Renovation Services: If you are opening a trade business, such as plumbing, carpentry, or electrical services, most provinces require a separate license for that particular trade. These licenses are granted by various associations of the trade or government regulating bodies.
- Home-Based Businesses: If you want to operate a sole proprietorship business from your home, you need first to check with your municipality regarding zoning laws. For example, most municipalities allow only certain types of businesses from being operated in the residence, like consulting businesses or businesses conducted online and no retail shops or businesses that service customers in person
Check your local municipality to make sure you are meeting all of the rules.
8. Intellectual Property Protection
If you have created a unique name, logo, or tagline, make sure you trademark them. This is especially crucial in the case of small businesses or sole proprietorships, as branding is most important for these.
9. Open a Business Bank Account
One of the smartest things you can do is open a separate business bank account. Here’s why it matters:
- Keeps personal and business finances separate.
- Simplifies tax filing.
- Builds up trust from clients as well as suppliers.
Even if you are a sole proprietor, this step brings professionalism to your operations.
10. Stay on Top of Compliance
Once your business is registered, you will need to keep it compliant with the Ontario regulations.
- Registration of a business name should be renewed every five years for sole proprietorships.
- File taxes and remit HST/GST when applicable.
- Keep proper financial records.
It may sound tedious, but staying organized will make sure that your business runs smoothly and avoids penalties down the road.
Why Sole Proprietorships Are a Smart Choice
Many people find sole proprietorships to be the perfect way to get their feet wet when first starting their business. To register a business in Ontario is comparatively easy, fairly inexpensive, and requires less paperwork than other structures.
Take Alex Turno, for example. His photography studio is a sole proprietorship business that lets him stay focused on his craft instead of getting bogged down by administrative tasks. It’s a simple setup that lets him stay flexible and grow at his own pace.
FAQs about Starting a Sole Proprietorship in Ontario
Q: How Do I Register a Business in Ontario?
To start a sole proprietorship, you will need to choose a business name, if the name is different from your own, register it with ServiceOntario you also have to obtain a Business Number with the CRA.
Q: What are some of the advantages of sole proprietorships?
They’re inexpensive, easy to set up, and give you full control over your business.
Q: Are there any disadvantages of Registering a Sole Proprietorship?
The only disadvantage is that a sole proprietorship does not protect liability, and your assets could be in jeopardy if there are any problems with your business financially.
Conclusion
To register a business in Ontario isn’t intimidating at all. You may be opening a creative studio, freelancing, or starting a side hustle, whatever the case may be, following these 10 tips will make the process more manageable.
So, if you are good to go and want to register a business in Ontario, IncorpPro can assist you with the process right from name approval to registration and everything in between. With years of experience, we have made business registration effortless and quite hassle-free for count-less entrepreneurs.
Let us know in the email what kind of business you’re starting-we’d love to hear your story and support your journey!