Creating a Sole Proprietorship

1. Choose A Name

• Choosing the right name for your business can be daunting.  Your name should be memorable and easily identifiable by your potential customers. It should be one that is distintive from your competitors, not misleading, confusing or too vague.  You want your name to attract customers,  be a good fit with your products or service and help build your business image.
• Your name should have a Distinctive (that sets your name apart) and a Descriptive (what you do) element
• Words/Expressions you CAN'T USE:
  • Words or expressions in any language that could be obscene
  • Words that imply your business is an organization, a corporation, a not for profit entity, college, institute or university.
  • Words that imply that your business is connected with the Crown or any Government of Canada without their written consent
  • Words that are prohibted or restricted under Federal or Provincial Laws
    • For a more detailed list on Name Restrictions, click here

IT IS YOUR RESPONSIBILITY to ensure that your name conforms with the regulations.  If you register a name that is contrary to any of the acts or regulations, the Ministry may cancel your registration at any time.

2. Conduct a search on your name

You have two options here for searching your name:

• In Ontario, you can order a Business Name report from Service Ontario which compares your identical name with businesses registered in Ontario  inlcuding Sole Proprietors, General Partnerships, Corporation Style Names, Limited Partnerships, and Extra Provincial Limited Liability Partnership/Companies. | Service Ontario: Your cost $8.00, Service Ontario Business Name Search
• We offer the New Business Name Search, which includes not only idential potentially conflicting names, but names which could be phonetically similar, spelled with coined word combinations or similar combinations of initials.  The names included here are only just in Ontario, but through the entire countrry. | McHines New Business Name Search: Your cost, $10.00 McHines Business Name Search
• You can also order a NUANS which is the same 6 page search report required for incorporation. The NUANS includes all the above entities as well as possibly similar corporations and registrations across Canada AND Trademarks.  More importantly, the NUANS includes possible phonetic similarites to your name as well as coined words and initial combinations. | Your Cost, $29.00 NUANS Search

3. Register Your Business Name

All sole proprietors must be registered in Canada,with the exception of Newfoundland and Labrador. In Ontario, you can do this by:

• Registering  through Service Ontario ($60.00)
• Registering through McHines ($70.00 - We will ensure the you've provided all required information and assist you with anything that is missing.

AFTER REGISTRATION:

4. Register for any other licences required to run your business - see here for a list of contacts
5. Set up a separate bank account for the Proprietorship
6. Register for CRA programs including Harmonized Sales Tax (HST), payroll deductions, corporate income tax and import/export accounts. To do that, you will neect to contact CRA directly.. Visit the CRA website or call 1 800-959-5525
7. Record your registration date and make sure you renew your business name every 5 years!
8. dopt an Accounting software program
9. Hire a bookkeeper if you haven't already done so
10. Think about your Marketing requirements-Get in touch with a graphic designer
11. Have you thought about your Website yet?  Do you need a Storefront that accepts Payment?
12. What kind of phone/cell phone system will you need?
13. What do you need for your office?  Office Furniture? Office Equipment?Supplies?
14. Will you use your office/home address as the Business Address, or will you rent a mailbox from UPS or Canada Post?
15. How will you ship your products?
16. How will you advertise?