Starting a new business is an exciting adventure, and registering your business in Ontario is one of the most important steps to make sure that you operate legally and professionally. This article will walk you through the essential steps to register your new business in Ontario in a simple and straightforward manner.
Choose Your Business Structure
Before registering your business, you need to decide on its legal structure. The most common types of business structures in Ontario are:
Sole Proprietorship: Owned and operated by one person.
Partnership: Owned by two or more people.
Corporation: A separate legal entity from its owners.
Each structure has its own advantages and disadvantages, so consider which one best fits your business goals and needs. You can learn more about the differences between each option on the Ontario government website.
Choose a Business Name
Your business name is an important part of your brand and company identity. When choosing a name, ensure it is unique and not already in use by another business. Doing a bit of research online while trying to decide on your business name is a fat, easy and free way to determine what you should name your company. Once you have a few names to choose from, you can check the availability of your desired business name by conducting a NUANS Pre-Search to see what is registered in Ontario and across Canada.
Register Your Business Name
If you are operating as a sole proprietorship under your own name, you do not need to register your business name. However, if you are using a different name, you must register it with the Ontario government.
To register your business name, you must follow these steps:
Complete a Name Search: Ensure your business name is available and not in use by another entity.
If you are incorporating, then you must reserve the name and incorporate within 90 days. You can obtain a NUANS Name Reservation with ONPro.
Register Online or In-Person: You can register your business name online through ONPro or visit a ServiceOntario center.
Obtain Necessary Licenses and Permits
Depending on your business type and location, you may need various licenses and permits to operate legally. This can include municipal licenses, health permits, or industry-specific certifications. Check with local, provincial, and federal authorities to determine what you need.
Register for Taxes
You will need to register for a Business Number (BN) with the Canada Revenue Agency (CRA) for tax purposes. This BN will be used for various tax accounts, including:
GST/HST: If your business earns more than $30,000 per year, you must register for the Goods and Services Tax (GST) or Harmonized Sales Tax (HST). You can learn more about the requirements for HST here.
Payroll Deductions: If you have employees, you need to set up a payroll deductions account.
Corporate Income Tax: If you have incorporated your business, you need a corporate income tax account.
Open a Business Bank Account
Separating your personal and business finances is important for managing your business effectively. Open a business bank account to handle all your business transactions. You will need your Business Number and business registration documents to open the account.
Keep Records and Comply with Regulations
Maintaining accurate records of your business activities, including income, expenses, and employee information, is essential. Ensure you comply with all relevant regulations, such as employment standards, health and safety laws, and tax filing requirements.
Registering a new business in Ontario is a step-by-step process that involves choosing the right structure, registering your business name, obtaining necessary licenses and permits, and setting up your tax accounts. By following these steps, you can ensure your business is legally compliant and ready to operate. Starting a business is a significant undertaking, but with careful planning and attention to detail, you can set a strong foundation for success.
You can find out more about the filings and searches that we offer at ONPro. Check out our website and if you have any questions, we are here to help!
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