Life Built in Canada

How to Register a Small Business in Canada as a Sole Proprietor (2026 Step-by-Step)

Last reviewed: August 2026

It’s easy to overthink every step of registering a first business. It’s simpler than it looks. Here’s the plain-English version worth having up front.

Do You Even Need to Register?

If you operate under your own legal name, you may not have to register at all. The moment you use a business name, most provinces require you to register it. It’s common to register as a sole proprietorship — the simplest, cheapest structure to start with.

Sole Proprietor vs. Incorporation

Sole proprietorship: cheap, fast, you and the business are the same legally. Incorporation: more protection and tax flexibility, but more cost and paperwork. Start as a sole prop unless you have a specific reason not to — you can incorporate later.

Step 1 — Choose and Search Your Name

Pick your name and run a business-name search to make sure it’s available.

Step 2 — Register the Business Name

Register with your province. In Alberta this is done through an authorized registry or online. Cost is modest — usually well under $100 for a trade name.

Step 3 — Get Your CRA Business Number

Register for a Business Number (BN) with the Canada Revenue Agency. You’ll use it for taxes and program accounts.

Step 4 — Decide on GST/HST

You must register for GST/HST once you pass $30,000 in revenue over four consecutive quarters — but you can register voluntarily earlier, which lets you claim back GST you pay on supplies and imports. If you import, this matters.

Step 5 — Open a Business Bank Account

Don’t run your business through your personal chequing account. A dedicated business account makes bookkeeping and taxes far easier.

Step 6 — Simple Bookkeeping

Track income and expenses from day one, even in a spreadsheet. Your future self at tax time will thank you.

Do This First

If you do nothing else today: pick your name, register it, and open a business bank account. That’s a real business.

General educational information, not legal or tax advice. Rules vary by province — confirm with your provincial registry and the CRA.

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A quick note: This article shares general information for Canadian entrepreneurs and reflects my own experience. It is not legal, tax, or financial advice — please confirm the details that apply to you with the CRA, CBSA, or a qualified professional before making decisions.

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