How to Register a Sole Proprietorship in Ontario

To register a sole proprietorship in Ontario, the owner registers the business name through the Ontario Business Registry. Online registration costs $60 and is processed immediately, and the registration expires every five years. Registration is needed when the business operates under a name other than the owner's own name. A sole proprietor who trades only under their own name has no business name to register with the province, although tax registrations with the Canada Revenue Agency (CRA) can still apply.

This guide covers how to register a sole proprietorship in Ontario step by step: when registration is required, what it costs, what the Ontario Business Identification Number (BIN) is and how it differs from a CRA business number, when GST/HST registration comes into play, and how renewal works. For an overview of every business structure and how each one is registered, see the guide to registering a business in Ontario.

What a sole proprietorship is in Ontario

A sole proprietorship is a business owned and run by one individual, with no separate legal entity behind it. The Ontario government's description of the structure sets out its two defining features: the owner is responsible for all debts and losses of the business, and creditors can take the owner's personal assets as well as the business to pay those debts. On the tax side, the business income is taxable at the owner's personal rate, and business losses and expenses can be deducted from the owner's personal income.

Because there is no separate entity, there is nothing to incorporate and no articles to file. The only provincial filing tied to a sole proprietorship is the registration of its business name, and that filing exists only when a business name is used.

When you have to register a sole proprietorship in Ontario

Ontario's guidance is direct: a sole proprietorship needs to be registered if the owner is not using their own name as the business name. The rule comes from Ontario's Business Names Act, which governs the registration of names used by individuals, partnerships and corporations.

In practice, the line falls between the owner's own name and anything else. A few examples show how it works.

The same name can also appear on a website, invoices, signage or social media profiles. Once a business identifies itself to the public under a name other than the owner's own, that name falls within the registration rule.

Cost and processing time

Ontario publishes a schedule of fees and service times for filings under the Business Names Act. For a sole proprietorship, the figures are as follows.

These are government fees. A service provider that prepares and files the registration charges its own fee on top.

How to register a sole proprietorship in Ontario, step by step

Registration is done online through the Ontario Business Registry. According to Ontario, online registration requires a working email address and a valid debit or credit card for payment, and the process involves creating an Ontario.ca Login and an Ontario Business Account.

• Choose the business name. A search of the Ontario Business Registry shows names already registered in the province, which helps avoid a name that is already in use.
• Create an Ontario.ca Login and an Ontario Business Account, which give access to the Ontario Business Registry.
• Select the business name registration for a sole proprietorship and enter the required details: the business name, the owner's name and address, the business address and a description of the business activity.
• Pay the $60 government fee by debit or credit card.
• Receive the registration, which includes a 9-digit Ontario Business Identification Number (BIN) and a company key used to make later filings for the business.
• Keep the registration with the business records. Banks and suppliers dealing with a business name commonly ask to see it.

The registration was formerly known as the Master Business Licence. Ontario now calls it a Business Name Registration, and many banks and forms still use the older name.

Ontario BIN vs CRA business number

Two different numbers are often confused at this stage. Ontario states that the 9-digit BIN issued by ServiceOntario is different from the business number (BN) provided by the CRA. Registering a business name in Ontario does not create a CRA business number.

The CRA explains that an unincorporated business only needs a BN when it registers for program accounts with the CRA, such as GST/HST or payroll. A sole proprietor with no employees who is not registered for GST/HST does not need a BN. The guide to getting a CRA business number walks through that registration.

GST/HST registration for a sole proprietorship

GST/HST is a federal registration with the CRA, separate from the Ontario name registration. Under the CRA's small supplier rules, a business generally remains a small supplier, and does not have to register, as long as its taxable revenues do not exceed $30,000 over four consecutive calendar quarters.

• If the $30,000 threshold is exceeded in a single calendar quarter, small supplier status ends in that quarter, and the CRA requires registration and the collection of GST/HST starting with the sale that put the business over the limit.
• If the threshold is exceeded over four (or fewer) consecutive calendar quarters, but not in a single quarter, small supplier status ends at the end of the month following that quarter.
• A business below the threshold that makes taxable sales in Canada can register voluntarily.

The details, including how to calculate the threshold and how to apply, are in the guide to getting a GST/HST number in Ontario.

Renewing the registration every five years

A sole proprietorship registration does not last indefinitely. Ontario states that a Business Name Registration, formerly known as a Master Business Licence, expires every 5 years and needs to be renewed within the window from 6 months before to 60 days after the expiry date. The renewal fee is the same as a new registration: $60 for a sole proprietorship.

Timing matters. If a registration has been expired for more than 60 days, Ontario does not allow it to be renewed. The owner has to register the same business name again, which produces a new BIN and a new company key.

After registering: common next steps

Registration of the name is usually one of several administrative steps when a sole proprietorship starts operating. Depending on the business, the list often includes:

• A CRA business number and GST/HST account, once the business registers for a CRA program.
• A business bank account in the registered name.
• Municipal licences or permits, which depend on the city and the type of business.
• Amendments to the registration within the required time if the address or other details change.

Separate records for business income and expenses also make it easier to report net business income on the owner's personal tax return, since the business has no tax return of its own. The business bank account guide explains the documents a bank asks a sole proprietor for.

Sole proprietorship vs incorporating in Ontario

Registering a business name does not change the legal nature of the business. The owner remains personally responsible for its debts, and the income is still taxed at the owner's personal rate. A corporation is different: it is a separate legal entity, its shareholders are generally not liable for its debts, and it files its own corporate tax return.

The sole proprietorship vs corporation guide compares the two in more detail, including cost and ongoing obligations.

Registering with Korporex

Korporex prepares and files the business name registration for a sole proprietorship in Ontario online, from the name details to the filed registration. Korporex is a document-preparation service, not a law firm or an accounting firm.

Frequently asked questions