Starting a business in Canada involves several separate steps across different government levels. This checklist walks you through each one in the correct order, so nothing gets missed.
Step 1: Choose Your Business Structure
Before registering anything, decide whether to operate as:
- Sole proprietorship: Simplest, cheapest, no separate legal entity. Best for most new freelancers earning under $80,000–$100,000/year.
- Corporation: Separate legal entity, limited liability, potential tax deferral advantages. Required by some clients. Adds administrative cost.
- Partnership: Two or more people sharing business ownership. Requires a partnership agreement.
Most newcomers and first-time self-employed Canadians should start as sole proprietors.
Step 2: Register Your Business Name (Provincial)
Required only if you use a trade name different from your legal name.
- ☐ Search name availability in your provincial registry
- ☐ Complete the online registration form (ontario.ca/businessregistry for Ontario; bcregistry.gov.bc.ca for BC; via authorized agent for Alberta)
- ☐ Pay the provincial registration fee ($40–$60 depending on province)
- ☐ Receive your Business Name Registration certificate (allows you to open a business bank account)
- ☐ Note your registration expiry date and set a renewal reminder
Step 3: Get Your CRA Business Number (Federal)
Required when you register for any CRA program account (GST/HST, payroll, corporate tax).
- ☐ Create or log into your CRA My Account at canada.ca
- ☐ Go to the Business Registration Online (BRO) portal
- ☐ Register for a Business Number (free, issued immediately online)
- ☐ Add any required program accounts at the same time:
- ☐ GST/HST account (RT) — if your revenue exceeds or will soon exceed $30,000
- ☐ Payroll account (RP) — only if you hire employees
- ☐ Corporate income tax account (RC) — only if you incorporate
Note: As of November 3, 2025, CRA no longer accepts BN registrations by phone. All registrations are online only through BRO.
Step 4: Open a Business Bank Account
- ☐ Gather required documents: government-issued ID, Business Name Registration certificate (if using a trade name), SIN
- ☐ Open a dedicated business chequing account at your preferred bank
- ☐ Set up Interac e-Transfer on the account (primary payment method for Canadian clients)
- ☐ Consider a USD account if you have US clients (Wise Business is a cost-effective alternative to a bank USD account)
Step 5: Set Up Accounting
- ☐ Choose accounting software (Wave — free; FreshBooks — ~$19/month; QuickBooks — from $7/month for self-employed)
- ☐ Connect your business bank account to the software
- ☐ Set up GST/HST tracking if registered (separate the collected tax from your revenue)
- ☐ Create an invoice template with your business name, address, payment terms, and (if registered) GST/HST number
Step 6: Register for GST/HST
Mandatory when total taxable revenue exceeds $30,000 in four consecutive calendar quarters.
- ☐ Monitor your revenue total against the $30,000 threshold
- ☐ Register through BRO the moment you cross $30,000 — you have 29 days from the sale that pushed you over the threshold
- ☐ Confirm your GST/HST filing frequency (annual for most new registrants under $1.5M)
- ☐ Start adding GST/HST to all Canadian client invoices immediately upon registration
- ☐ Note your annual filing deadline (typically April 30 for calendar-year annual filers)
Step 7: Understand Your Tax Obligations
- ☐ Know your key tax dates: April 30 (pay any balance owing) and June 15 (file T1 return if self-employed)
- ☐ Open a dedicated “tax savings” sub-account or set aside 25–30% of each payment for income tax and CPP
- ☐ Determine if you need to pay quarterly tax instalments (required if your net tax owing exceeds $3,000 in the current or either of the two prior years)
- ☐ Keep all receipts for business expenses — the CRA requires records for 6 years
Step 8: Ongoing Compliance
- ☐ File your T1 personal return with Schedule T2125 annually by June 15 (payment by April 30)
- ☐ File and remit GST/HST returns by the applicable deadline
- ☐ Renew provincial business name registration before expiry (5 years in Ontario and Quebec)
- ☐ Update your provincial registration if your address or business name changes
Frequently Asked Questions
How long does the full registration process take?
Provincial business name registration: same day to 5 business days depending on province. CRA Business Number: immediate online. Bank account: same day at the branch (call ahead to book an appointment). Total time from decision to fully operational: typically 1–2 weeks.
Do I need to register with both the province and the CRA?
They are separate registrations. Provincial registration is for your business name and provincial identity. CRA registration is for your tax accounts (GST/HST, payroll, etc.). You may need both, one, or neither depending on your situation — as described in the steps above.
What is the total cost of registering a sole proprietorship in Canada?
Provincial business name registration: $40–$60 depending on province (zero if operating under your legal name). CRA Business Number: free. Business bank account: monthly fees of $0–$30 depending on bank and account type. Total out-of-pocket: typically $40–$60.