If you would like to register a new business in Ontario, there are several things that you should be aware of beforehand.
For instance, the business registration process can vary greatly, depending on the province that you live in. However, if you would like to register a new business in Ontario, the first step will involve selecting the type of business you wish to start.
For instance, you may wish to start a sole proprietorship, which will involve you being the sole owner of the company. While you will enjoy all of the profits that your business brings in, you will also be fully liable for anything that goes wrong. Another option is to open a corporation, which is the most popular type of company that is started in Canada.
A corporation in Ontario is also seen as a separate corporate and legal entity. This means you will need to file a separate tax return when you register your business as a corporation. Another option is to open a partnership, which will involve at least two parties that make business decisions together, albeit the business is not incorporated. A general partnership will involve all parties being equally liable for all company debts.
Our focus will be on providing you with a comprehensive guide on what you need to do to register a new business in Ontario.
Steps for Registering Your Business in Ontario
If you would like to register a new business in Ontario, follow the steps below.
Register a unique business name
First, you will need to register a business name, which means you will also need to check that the name is still available for business use and is not trademarked.
Decide the type of business that you wish to operate
You will need to determine the type of business you wish to operate and the type of identity that will cater to your unique needs (i.e., corporation, partnership, sole proprietorship).
However, if you are not certain about the type of business you wish to start, we recommend that you consult with a trusted and reputable accountant or lawyer in your area to help guide you through the process.
File an Ontario Business Name Application
You will then need to file an Ontario Business Name Application. To do so, you will need to visit your local Ontario Corporate Registries Office.
You will also need to acquire an Ontario Master Business License to set up your business. However, please note that you will only acquire your Ontario Master Business License after you have registered your new business name in Ontario.
Once you have obtained your Ontario Master Business License, you will have tangible proof of your business name registration. This may be required when dealing with financial institutions and is a must when performing business transactions with the Government of Ontario.
Choosing Your Business Name
The first step in choosing a business name is choosing a name that is easy to pronounce and spell. The first word in your business should also be memorable, as it will need to stick in the minds of your target customers to be most effective.
Your business name should also have a descriptive element while not limiting it to one product or service; unless you are in a very particular niche and only wish to provide a singular product or service. Another tip is to add a few words to elaborate on the company name with a geo-location.
It is also recommended that you write down all possible names while trying to develop new ways to display each name.
Enter each name into a search engine to determine if the names have already been taken and if any derivatives of said names register on various search engines.
You may also get honest feedback from those close to you, such as family, co-workers, and friends, as they may provide some valuable insight that you can use to craft the quintessential business name.
Check various social media channels or outlets that you wish to use to promote your business to ascertain if your prospective business names can be utilized. You should also check a domain registry to determine if the name you wish to take is available for an online site under the same name.
A NUANS preliminary search will also provide you with a clear and concise picture of what registration exists simply by accessing the database. Those looking to incorporate in Ontario will also be required to complete a NUANS report. Fortunately, doing so is simple, as you will only need to complete the link and specify the jurisdiction you wish to incorporate.
Registering Your Business in Ontario
There are many benefits of registering a business in Ontario, such as limited personal liability and reduced tax liability. Registering a company will also reduce the risk of conflicts occurring in the future between the confounders.
Registering your business will also enhance your business’s perception by future partners and clients, as well as the overall reputation of your business.
Finally, your ability to raise marked amounts of capital will also increase dramatically, as not only will you be able to both incur debt and borrow money. You can raise equity capital and sell shares once you have registered your business.
Registering a business has many benefits, and may also be a requirement, depending on the type of business that you wish to operate.