Sole Proprietorship Registration

What is Ontario Sole Proprietorship?

Sole Proprietorship is a business the simplest business structure that is owned and managed by a single person. A sole proprietorship is a common business structure and is easy to set up in Ontario. This business structure is more popular for new entrepreneurs who just want to start a business in Ontario. Ontario Sole Proprietorship is an unincorporated business owned and operated by one individual. As it is easy to set up and manage a business that’s why it is an attractive Business option for many new entrepreneurs.

What information is required to register an Ontario sole proprietorship?

To register a sole proprietorship in Ontario, you will need the following information:

• Owner’s Full Legal Name
• Proposed Business Name
• physical location of your business
• Owner’s Contact Information and Address
• Description of Business Activities
• Registration Fee $60+ Govt fee
• Other fees if you required

Advantages of Registering a Sole Proprietorship:

• Setting up a sole proprietorship is simple and inexpensive.
• The sole proprietor (owner) has complete control and decision-making authority.
• All profits go to the owner. Because there is no shareholder.
• Business income is taxed at the owner’s personal income rate.
• Minimal paperwork and legal requirements.
• Flexibility in managing and running the business.
• Business dissolution is Easy. A business can be dissolved if the owner decides to discontinue the business.
• Business maintenance costs are low. Most of the time owner handles all tasks.
• Administrative costs are low because it is not a separate legal entity.
• Business startup costs are low if we consider to corporation

Disadvantages of Registering a Sole Proprietorship:

• The sole proprietor (Owner) is personally responsible for all business debts.
• No legal separation between the business and the owner.
• A business owner has sole responsibility for all business decisions and tasks
• Limited lifespan. The business ends when the owner dies or retires.
• No protection for the business name.
• High tax rate because income is taxed at the owner’s personal income rate.
• No way to raise capital. Most of the time depends on personal loan

Who is the sole proprietor?

A sole proprietor is an individual who owns and operates a sole proprietorship business. In Ontario, sole proprietorship, sole proprietor is the sole owner and has full control over all aspects of the business. The person, sole proprietor, is personally responsible for all the business’s debts, obligations, and legal liabilities.

Can You register a Sole Proprietorship in federal jurisdiction?

In Canada, sole proprietorships are registered at the provincial or territorial level. Federal registration process is available for corporations, not sole proprietorships. This means you must register your sole proprietorship business with the appropriate provincial or territorial government where you plan to operate

Do I Need to Register a Sole Proprietorship in Ontario?

If you want to operate a business under your legal name, then Sole proprietorship business registration is not mandatory in Ontario. But, if you want to operate a business under a business name then registering a sole proprietorship is necessary.

Registering for Sole Proprietorship can give you a chance to open a bank account under your Sole Proprietorship Business name. That will help you manage your finances and tax return. It will also give you a professional image that you do not have with an unregistered business. If you do not register your business, you will get benefits from your suppliers.

How to Register a Sole Proprietorship in Ontario?

An Ontario sole proprietorship is the easiest form of business to start. Before registering sole proprietorship you must decide whether the Business structure is suitable for you or not. There is an alternative option to incorporate your business under the Ontario Business Corporations Act as a single or sole director. However, here are the steps you need to follow:

1. Choose Ontario Sole Proprietorship Name: From the aforementioned discussion, you already know that if you want to operate your business under your legal name you do not need to register your Sole proprietorship. If you want to operate under a business name you must need to register your business name.
2.  Ontario Name Reservation Report: 

Once you decided on the business name now you should check the name availability for your Ontario Sole proprietorship business. Although Ontario’s sole proprietorship name is not protected for extra precaution and gets sued by competitors it is highly recommended to search your proposed business name. So, choosing a unique business name for your Ontario Sole proprietorship is recommended. For this, you need to perform an Ontario NUANS Report also known as “Ontario Reservation Report” (Newly Upgraded Automated Name Search) to check the availability of your chosen Ontario Sole proprietorship business name.

3. Domain Name Reservation:
When you reserve your Ontario Sole proprietorship business name now you should also check the domain name from the domain database. It is recommended only when you want to make a website and want an online presence in Canada. If a domain name is not available, you can propose a new name that is available for both the Business name and the domain name. No worries you do not need to go anywhere else Business Ontario can do both for you under the same roof. If you register your sole proprietorship with Business Ontario, you will have the opportunity to do unlimited nuans name searches to make sure your proposed business name & domain is available to use. Until your name is reserved, we will do pre-search.

4. Paper works:  Ontario Sole proprietorship is the easiest type of business to register in Ontario. You can register your business through Service Ontario or by visiting a Service Ontario center. Business Ontario offers hassle-free and flawless business registration that makes your journey smooth. What you need is just to fill up our user-friendly online form, and we will take care of the registration process for your Ontario Sole proprietorship. The following information you need to fill up online Sole proprietorship:

• Business owner details
• Business address
• Business Name and Domain name etc.

Post Registration tasks of Ontario Sole proprietorship:

Register for GST/HST: If your business revenues exceed $30,000 annually, register for a GST/HST number with the Canada Revenue Agency (CRA).

Business Number: It is mandatory to set up a business number with CRA to file an annual Tax return.

Export-Import Account: If your Sole proprietorship business involves any export-import activities you need this account.

Open a business bank account: Open a separate Ontario Sole Proprietorship business bank account to keep your personal and business finances separate.

Obtain necessary permits and licenses: You may need to obtain permits or licenses depending on your business activity and area requirements. So, do Research and acquire any required permits or licenses for your business operations. You may get help from BizPal.

Set Up Accounting and Record-Keeping Systems: Every business even sole proprietorship should Keep detailed records of financial transactions, contracts, and other important documents.

File Required Tax Returns: You must File your business income as part of your tax return and remit any collected sales taxes to the CRA.

Promote Your Business: Develop a marketing plan, create a business website, and use social media to attract customers and grow your business.

Sole proprietorship vs Corporation: Which one is right for you?

Choosing between a sole proprietorship and a corporation depends on some factors such as-

liability concerns, tax implications, control preferences, and future growth plans. So, you should consider these factors before proceeding to register an Ontario Sole proprietorship registration

Sole proprietorship vs Partnership

Although both are unincorporated businesses, the key differences are- A sole proprietorship involves one owner, while a partnership involves multiple owners.

In sole proprietorship there is no partner or shareholder. But Partnerships consist of two or more partners.

After registering your Ontario sole proprietorship, what will you receive?

Once you register your Ontario Sole proprietorship you will receive a certificate of Ontario Sole Proprietorship and Registration Information sheet of Ontario Sole Proprietorship. With these documents, you can immediately open a business account under your Ontario Sole proprietorship business.

Can I Change Ontario Sole Proprietorship to an Ontario Corporation?

This answer can not be straightforward. But yes, a sole proprietorship business name can be converted into an Ontario corporation. For this, your Ontario corporation name must be available to incorporate. And need to cancel your Ontario Sole Proprietorship registration.

Why Choose Business Ontario Corporate Services Inc.?

Our goal is to simplify the process of registering a sole proprietorship and provide customers with the necessary tools and information to start their business successfully. With our support, customers can confidently establish their sole proprietorship and focus on their entrepreneurial endeavors.

Official Intermediary of Service Ontario: As an official intermediary, we facilitate direct and efficient interactions with government services, streamlining various administrative processes.

Expertise in Local Regulations: Regardless of our intermediary status, we are experienced and specialized in Ontario’s corporate laws, aiding in compliance and legal navigation.

Comprehensive Services: We offer a broad range of services including incorporation, Business Registration, Corporate search, corporate filings, Trademark, copyright, Name reservation and so on that your business needs.

Convenience: Business Ontario Corporate Services Inc. offers an easy-to-use online filing process to save you time and effort. You just need to fill out our online form and we will do rest of them.

Competitive Pricing: We are here to assist small businesses and entrepreneurs to launch their businesses smoothly. That’s why our fees are the lowest and most attractive compared to other options.

Aftercare Services: We believe in long-term relationships with our all customers and partners. Our work has not been done after filing or registering an order. We offer ongoing support and updates on legislative changes that could impact your business. We send emails and calls to our existing customers frequently to grow their businesses.

NUANS member: We are a registered member of Corporation Canada’s NUANS department. We manage the NUANS name search report necessary for corporate name changes in-house. That’s why you do not need to go somewhere else for nuans name reservation.