What is Business Registration in Canada?
Operating as a sole proprietor has some great advantages for small business owners looking to keep things simple. It is the easiest type of business to run because unlike other business entities, there are no annual maintenance requirements. Plus, owners of a sole proprietorship file the business' income directly on their personal taxes. This makes it an ideal choice for people running at home / low risk businesses who prefer not to deal with the hassles associated with incorporation.
When you conduct business as a sole proprietor under a business name other than your personal legal name, you'll need register a trade name. When you register a trade name, you are creating a name that will be used to represent your business to the public. Keep in mind that while it does not grant you any type of legal ownership of the name, it is proof on the federal or provincial level that the name is being used by your business and yours alone.
It is important to note that registering your business name does not provide the liability protections gained from incorporation. Instead, you are responsible for the debts and obligations of the business. This can be acceptable for business owners who operate in industries where there is little chance of being sued or accruing a large business debt.
Can I use my legal name as a business name?
If you wish to operate your sole proprietorship under your own name, you can do so. However, the name you use must be your exact legal name with no changes. That means you are not able to add any additional words or phrases to your business name.
As an example, if your name is "Jane Smith", and you wish to start a graphic design company, you would not be allowed to operate your business as "Jane Smith Designs" without registering the name. This creates obvious issues when you want to indicate to potential customers to understand what your business does. Plus, a common name may be more difficult to distinguish as a business name, making it hard to market your services.
Where do I need to register my business in Canada?
You must register your business name with the appropriate provincial authority where you intend to conduct business. Each province has its own registry, and the processes vary depending on where you register. Our service makes it simple by registering your business in the appropriate jurisdiction on your behalf.
