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Susan Ward

Does Your Business Have to Be Registered?

By , About.com GuideApril 16, 2009

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Yes, in most cases. First, there's the issue of the business name, and whether or not it has to be registered with your province. This depends on what form of business you've chosen for your business.

In most provinces and territories, every business has to be registered except for sole proprietorships that use only their owners' legal name with no additions. So here in B.C. for instance, I have a sole proprietorship named 'Susan Ward' which I have not had to register. (Newfoundland & Labrador is the exception to this; in that province no sole proprietorships or partnerships need to have their business names registered.) See Starting a Business: Register a Business Name for information on how to register your business.

Note that registering your business name doesn't give you a business license. You may also have to register your business with your municipality. Some businesses will also need to register for special operating licenses from their provinces.

Second, there's the whole sales tax issue. Does your business have to register for GST/HST and/or PST?

You may or may not have to register for GST (the Goods and Services Tax) but if you sell products or services in a province that has PST (Provincial Sales Tax) that are not tax exempt, you will definitely have to register for (and charge) PST. (PST is called Retail Sales Tax in some provinces.)

To make matters even more confusing, you may want to register for GST anyhow, even if you don't have to. (See Do I have to register for the GST?) And third, there are your responsibilities as an employer. If you have employees, even if they're only 'casual', you will have to register for Workers' Compensation Insurance. (In some provinces, Workers' Compensation Insurance is necessary even if you're just hiring someone to cut your grass or babysit!) Here's a list of Workers' Compensation Insurance provincial websites where you can find more information about Workers' Compensation Insurance registration.

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