Register/Renew Your Sole Proprietorship In Ontario

A Sole Proprietorship is an unincorporated business structure owned and operated by one individual. The owner and the business are considered the same legal entity, which means the owner is personally responsible for all debts and obligations of the business. Registration is filed under the Ontario Business Names Act through the Ontario Business Registry, and the registration is valid for 5 years.

No. Since October 19, 2021, the Master Business Licence has been replaced by the Business Name Registration document, issued through the new Ontario Business Registry (OBR). The new document serves the same purpose as the legacy MBL; it confirms your business name is registered with the Province and is the document banks accept to open a business bank account.

If you conduct business using only your exact legal first and last name, registration may not be required. If you use any variation or additional wording, you must register your business name in Ontario. For example, "John Smith" may not require registration, but "John Smith Consulting" or "John Smith's Catering" would require registration.

Sole Proprietorship registrations in Ontario are valid for 5 years. Renewal can be filed up to 6 months before the expiry date, or up to 60 days after the expiry date. If you don't renew within the 60-day grace period, the registration is no longer valid and a new registration is required, which means you lose your original registration date. Ontario Business Central provides free renewal reminders to help you avoid this.

HST registration becomes mandatory once your worldwide taxable revenue crosses $30,000 across any 4 consecutive calendar quarters. Once you cross this threshold, you have 29 days to register for HST with the CRA. Below the threshold, registration is optional (voluntary) many sole proprietors register voluntarily to claim Input Tax Credits on business expenses. Ontario HST is 13%.

Business income is reported on the owner's personal tax return as self-employment income (Form T2125) and taxed at the applicable personal income tax rate. There is no separate corporate tax return. Sole proprietors must also handle CPP contributions on net business income above the basic exemption, and may need to register for HST and collect sales tax once revenue crosses the $30,000 threshold.

No. A Sole Proprietorship is not a separate legal entity from its owner. The owner is personally liable for all business debts and obligations, which means personal assets (home, savings, vehicles) may be at risk if the business incurs financial obligations or is sued. Customers concerned about personal liability often choose to incorporate instead, which provides limited liability protection.

Not initially. A Sole Proprietorship only needs a CRA Business Number when registering for one of the program accounts: HST (when crossing $30,000 in revenue), payroll (when hiring employees), import/export, or other tax accounts. Below the HST threshold and without employees, you may not need a BN at all. Your personal SIN handles tax filing through your personal tax return. Note: Effective November 3, 2025, CRA no longer accepts BN registrations by phone they must be filed through BRO portal or a Registry Consultant like OBC.

No. A Sole Proprietorship is limited to one owner by definition. If you plan to operate with two or more owners, register a General Partnership instead, or consider incorporating with multiple shareholders. Adding an owner to an existing Sole Proprietorship requires cancelling the current registration and registering a General Partnership or corporation.

A Sole Proprietorship is owned by one individual. A Trade Name (also called a DBA, "Doing Business As") is a registered business name used by an existing corporation or General Partnership to operate under a different name than its legal corporate or partnership name. If you're a single owner without a corporation, register a Sole Proprietorship. If you already have an Ontario corporation and want to operate under a marketing name, register a Trade Name.