5 tips to register a sole proprietorship in Ontario
Starting your journey like an entrepreneur can be sometimes challenging. One of the easiest ways to kickstart this adventure is by registering a Sole Proprietorship.
This business structure is simple, cost-effective, and gives you full control over your business. But where do you start? Let us give you this five tips to help navigate the process of registering a Sole proprietorship in Ontario.
1. Understand What a Sole Proprietorship is
It is an unincorporated business owned and operated by one individual. , If you want to have full control over your business decisions and operations – that is the right option for you. However, you will be personally liable for all debts and obligations related to the business. A sole Proprietorship is a good option if you don’t have a lot of cash on your hands, and also if you don’t want to struggle with plenty of paperwork like in the incorporated business. It’s easy to set up and manage.
2. Choose and Register a Business Name
If you are confident that Sole Proprietorship is the right structure for you, start the registration process by choosing a business name. Select the business name that represents your brand and helps customers identify your services or products. Keep the name distinctive and not easily confused with existing businesses. Do the NUANS Search to make sure it is unique and not used by other businesses. You can do it here
Choose a simple name: a simple and memorable name is easier for customers to recall and recommend.
Once you’ve settled on a name and confirmed it’s availability, you need to register it. Just follow this link fill out a simple online form, and we will register your sole proprietorship in a few business hours. The registration process is straightforward, our agent will contact you to confirm all the details, and will send the registration documents by an email.
3. Obtain Necessary Permits and Licenses
It’s good to know that some businesses in Ontario require licenses and permits to operate legally. If you are not sure whether your business need license, you can easily check it on BizPal Government portal here
Simply enter your business location and type, and BizPal will generate a customized list of the necessary permits and licenses. Make a research and find the requirements for your particular business. Let’s say you are opening a restaurant, in that case you will definitely need some health permits.If you start a for-profit business as a licensed immigration consultant, federal law requires that you be regulated by the Immigration Consultants of Canada Regulatory Council (ICCRC) as a Regulated Canadian Immigration Consultant (RCIC).
4. Register for Taxes
Now when your Sole Proprietorship is registered and you receive the profit you will need to start managing your business finances. If your annual business revenue exceeds 30000 CAD, you must register for a Harmonized Sales Tax (HST) account with the Canada Revenue Agency (CRA). We can make process easier and do it for you Click here.
Once you completed the registration, you must collect the HST on your sales and report it to the CRA.
If you plan to hire employees, you’ll need to set up a payroll deductions account. This account allows you to remit income tax, Canada Pension Plan (CPP), and Employment Insurance (EI) deductions. We can register the Payroll for you fast and painless.
5. Understand Your Legal Obligations
Running a business comes with the legal obligations that you need to understand. As a Sole Proprietor, you are responsible for all debts and obligations of your business, meaning that your personal assets could be at risk if your business has debts it cannot pay. During the Tax season, you will report business income and expenses on your personal income tax return using the T2125 form (Statement of Business or Professional Activities). You may need to consult the specialist on how to accurately report your income, claim eligible business expenses, and meet tax filing deadlines. Online Business Registration is ready to help you with the corporate tax account registration
If you hire employees, please be sure to comply with Ontario’s employment standards, including minimum wage, overtime pay, vacation time, and workplace safety. Also, consider obtaining appropriate insurance coverage to protect your business and personal assets. If you work in construction, we recommend to register with the Workplace Safety and Insurance Board (WSIB).
Although it’s not a legal requirement, you will most likely have to open a bank account to manage your finances effectively. Keep your business and personal finances separately.
To Sum It Up:
Registering a Sole Proprietorship is a big step towards achieving your entrepreneurial goals. At the same time, it is a relatively simple process. Be sure to plan it carefully and understand the legal and financial obligations. Follow the 5 easy step – understand what is a Sole Proprietorship, choose and register business name, get the necessary permits and licenses, register for taxes, understand your legal obligations – you will be successful in your business journey. If you feel like this process is too overwhelming and complicated – leave it to the team of professionals – Online Business Registry. We can can complete your Sole Proprietorship registration in just a few business hours:
We are a registered organization under Ontario Business Corporations Act, and have already helped to set up thousands of businesses all over Canada.
Online Business Registry(OBR) is an Ontario based company specialized in providing one-stop solution for affordable incorporation and business registration services in Ontario. As an official member of Nuans Canada and Corporations Canada, we provide comprehensive incorporation packages, Business registration services, NUANS report and other Notice of Changes or business change for an existing business.
