1. Register Your Business Name
If you are operating under a name other than your own legal name, you must register your business name with the Ontario government. This applies to sole proprietorships, partnerships, and corporations.
Official Resource: Ontario Business Registry
2. Get a Business Number (BN)
The Business Number is a unique 9-digit number provided by the Canada Revenue Agency (CRA). It is the standard identifier for your business when dealing with the federal government.
You need a BN if you require any of the following program accounts:
- GST/HST (RT)
- Payroll deductions (RP)
- Corporation income tax (RC)
- Import-export (RM)
Official Resource: Register for a Business Number (CRA)
3. Register for GST/HST
In Ontario, if your business has total taxable revenues of more than $30,000 over four consecutive calendar quarters, you must register for GST/HST. The current HST rate in Ontario is 13%.
Even if you are a "small supplier" (under $30k), you may choose to register voluntarily to claim Input Tax Credits (ITCs) on your business expenses.
4. Understand Your Payroll Obligations
If you plan to hire employees, you must open a payroll program account. You are responsible for deducting CPP, EI, and income tax from remuneration and remitting it to the CRA.
