First, let’s make sure registering is something you need to do.

I’ll start by saying that if you are a sole proprietor using your First Name and Last Name for your business, you may not need to register!

As a sole proprietor, you must register your business if any of the following apply:

You are operating under a business name that is not just your First Name Last Name.

You have to register for GST/HST.
You want to open a formal business bank account.

If you choose to incorporate, the incorporation process includes your business registration.

When You Are Registered

When you register your business with your province, you get a Master Business Licence.

The Master Business Licence allows you to open a formal business bank account; this is the document your bank or financial advisor needs to open the account.

You can then register this Master Business Licence number with CRA to get a Business Number.

Having a Business Number allows you to register for CRA My Business Account, giving the CRA a new way to talk to you about your business, instead of just through your SIN.

Why should you register your business?

While not always required, opening a formal business account with your bank (even as someone operating as “First Name Last Name” gives you an extra level of privacy from CRA in case of an audit.
All of the COVID economic response measures were for businesses with a Business Number, which is essentially the government showing everyone how important a business number is to them. I saw a lot of businesses unable to claim for the CEBA loans because they didn’t register for a Business Number.

My view is that every health professional should register their business so they can access emergency funding in the future (knock on wood, you will never need it!)

This is a LOW-COST way to set up your business for success!

Now that you understand the different types of businesses you can create you can make a more educated decision on what business type will be best for you.

Ready to register your business? Use these links:
Federal government site for registering your business here.

Access each province or territory site here.

RESOURCES:

Have more questions about business registration? Book a free discovery call to get started.