Free Tips on Registering Your Business
Selecting the Right Structure
Sole Proprietorship
Sole Proprietorship
Sole Proprietorship
A sole proprietorship is when one person owns and runs the business. You are the boss and the business is not a separate legal entity. It’s the easiest and cheapest way to start a business in Canada.
When you file your taxes on your personal income tax return (T1 General), you must complete the Statement of Business Activities.
The deadline is the same as your personal taxes which is April 30 for taxes owed, but you have until June 15 to file if you're self-employed.
If you plan on making more than $30,000 per year, you need to register for GST/HST
Applying for loans relies on your personal credit or home equity and it's great for small loans, lines of credit, or programs like Futurpreneur..
Corporation
Sole Proprietorship
Sole Proprietorship
A Corporation is a separate legal entity from its owners. You become a shareholder, and the business can own assets, sign contracts, and be liable for its own debts.
You will need to file a T2 tax return to file your taxes within 6 months of your corporations' year-end.
You can register as either a numbered company, such as 12345678 Canada Inc or you can do a NUANS name search if you want to register your company as a unique name (eg. Tom's HVAC Services Inc.)
You can choose between provincial or federal incorporation (federal offers national protection). If you register federally, you'll likely need to do an Extra Provincial Registration for the province in which you will be operating in.
You can apply for loans in the company’s name, attract investors by issuing shares, and build corporate credit over time with clean books and credit lines.
Partnership
Sole Proprietorship
Partnership
An agreement between two or more people to run a business together. Each partner shares responsibilities, profits, and liabilities unless a limited partnership is in place.
You need to register the partnership name with your province after drafting a partnership agreement (even if not legally required) to define responsibilities, profit splits, and exit terms.
You need to file a T5013 Partnership Information Return (if required based on revenue/structure). Each partner includes their share on their personal T1 tax return using T2125 by March 31 (if required), and personal returns as usual.
You can borrow based on the combined capital and credit strength of all partners
We've partnered with the easiest partner.
We found Ownr to be the most user friendliest solution to registering your business. They have been incubated by RBC and everyone we know has been happy to use them.
If you want to go fast, go alone. If you want to go far, go together.
African Proverb
Copyright © 2025 Ragency - All Rights Reserved.
This website uses cookies.
We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.