Do I have to register a sole proprietorship in Ontario?

Only if you carry on business under a name other than your own. Under section 2(2) of the Business Names Act, an individual may not carry on business or identify the business to the public under a different name unless it is registered. If you trade under your own name, the Act does not require registration. Licences, tax accounts and other rules can still apply.

How much does it cost to register a sole proprietorship in Ontario?

$60 for a new registration or a renewal online, according to the Ontario government's fee page (updated 29 September 2026). Amending or cancelling a registration online is $0. Searching the registry is free. Fees change, so confirm on the official page before you pay.

How long does a sole proprietorship registration last?

Five years. The registry's all-services page says the registration expires every five years and must be renewed from six months before to 60 days after the expiry date. Renewal is the owner's job.

Do I need a business number or HST number as a sole proprietor?

The CRA says that if your business is unincorporated you only need a business number when you register for a program account, such as GST/HST or payroll. You are a small supplier, and do not have to register for GST/HST, if you have not exceeded $30,000 in taxable sales over four consecutive calendar quarters. You may register voluntarily. The CRA page sets out the single-quarter rule and the 29-day registration deadline.

How is a sole proprietor taxed?

You report business income on your personal return. The CRA names Form T2125, Statement of Business or Professional Activities, for business and professional income, and the income goes on lines 13500 to 14300 of the return. Ontario.ca says the income is taxable at your personal rate. Whether instalments apply to you depends on your tax owing; see the CRA page.

What was the Master Business Licence?

The Ontario Business Registry's all-services page says the Business Name Registration was formerly known as a Master Business Licence. If a guide or form still uses the old name, it means the registered business name, which is valid for five years.

Free guide · Business structures

Sole proprietorship in Ontario

A sole proprietorship is a business owned by one person. It is not a separate legal entity, so you are personally responsible for its debts.

This page goes deep on that one structure: when you must register, what the registration costs and how long it lasts, and the CRA, WSIB and licence questions that follow. For the steps that apply to every structure, see our guide to how to start a business in Ontario.

Published October 5, 2026Last reviewed October 5, 2026How we research and correct this

The basics

What a sole proprietorship is

Information, not advice

This is general information, not legal or tax advice. The Government of Ontario decides the registration rules, the Canada Revenue Agency decides the tax rules, and your municipality and industry regulators decide licences. Where a rule depends on your situation, we link to the body that decides it.

Ontario.ca calls it a business owned by one person and the easiest and most common way to start a business. You and the business are the same legal person. There is no company to form and no articles to file.

Liability is unlimited. Ontario.ca says you are responsible for all debts and losses, and that creditors can take your personal assets and your business to pay debts. Insurance can cover some risks, but it does not change who the law holds responsible.

Your name is not protected, and your income is taxable at your personal rate, according to the same page.

Registration

When you must register, and when you do not

The rule comes from the Business Names Act, which the Ontario Business Registry administers.

You do not have to register a name if

you carry on business under your own name. Section 2(2) of the Business Names Act only requires registration for a name other than your own.

You must register a name if

you carry on business, or identify your business to the public, under any name other than your own. Trading as a name you invented is the clear case. If your name plus an extra word counts as a different name, ask the registry before you assume it does not.

Not registering when you had to is an offence: the Act sets a fine of up to $2,000 on conviction for contravening the rule without reasonable cause. Registering a name does not protect it from being used by someone else, and it does not turn you into a company. Not needing a name registration does not mean you need nothing else; tax accounts and licences have their own rules, below.

Fee and term

Per the Ontario government's fee page, updated 29 September 2026

New registration: $60 online, processed immediately.
Renewal: $60 online. Amending or cancelling online: $0.
Term: five years. Renew from six months before to 60 days after the expiry date.
Searching the registry for a name is free.

Sources: Ontario.ca fees and times, Ontario Business Registry all services. Fees can change. Confirm the amount on the official page before you pay.

The Master Business Licence

Old name, same thing

The registry's all-services page says the Business Name Registration was formerly known as a Master Business Licence. You will still see the old name in older guides. Today it means the registered business name, valid for five years.

How to register

How to register a sole proprietorship online

Registration is done in the Ontario Business Registry. If you are not sure which structure you want yet, read what to register instead of an LLC first.

Decide whether you need to register a name at all
If you carry on business under your own name, the Business Names Act does not require you to register it. If you use any other name, you must register it.
Search the Ontario Business Registry
Search the registry for free to see whether the name you want is already taken. A registered business name is a public record; it does not protect the name.
Register online
Choose the sole proprietorship service in the Ontario Business Registry. You are asked to create an Ontario.ca Login and an Ontario Business Account, and you pay with a debit or credit card. The fee is $60 online.
Add the CRA accounts you need
A sole proprietor only needs a CRA business number when registering for a program account such as GST/HST or payroll. Register for GST/HST when your sales pass the small supplier threshold of $30,000, or earlier if you choose to.
Check licences, then calendar the renewal
Use BizPaL to find the federal, provincial and municipal licences that apply to your business and location. Renew the registration before it expires; it is valid for five years.

The Canada Revenue Agency side

Business number, HST, and your tax return

Registering a name with Ontario and dealing with the CRA are separate. The first does not do the second.

Business number

The CRA says that if your business is unincorporated you only need a business number when you register for a program account such as GST/HST or payroll. See when you need a business number.

GST/HST

Small supplier threshold: $30,000

You are a small supplier, and do not have to register, if you have not exceeded $30,000 in taxable sales over four consecutive calendar quarters. You may register voluntarily.

If you exceed $30,000 in a single calendar quarter you stop being a small supplier and must charge GST/HST on the sale that took you over. Over four quarters, the rule is different and the date moves to the end of the month after the quarter. In both cases the CRA gives 29 days from your effective date to register. The details and worked examples are on the CRA's when to register page. Some activities have their own rules, so check your situation there.

Reporting income

On your personal return

A sole proprietor reports business income on their own return. The CRA names Form T2125, Statement of Business or Professional Activities, for business and professional income, reported on lines 13500 to 14300 of the return. See the CRA's sole proprietorships and partnerships page.

Instalments

The CRA says self-employed people may have to pay tax by instalments. For 2026, the general test is net tax owing above $3,000 in 2026 and also above $3,000 in either 2025 or 2024 (the threshold is $1,800 in Quebec). Whether it applies to you depends on your tax owing, so read the CRA's instalments page or ask an accountant.

Other rules that apply

WSIB, licences and insurance

These depend on your industry and your town. This page cannot tell you which apply; the bodies that decide them can.

WSIB

Industry-specific

Whether you need workplace safety insurance depends on your industry. The WSIB says that independent operators, sole proprietors, some partners and some executive officers who work in construction must have coverage. See its page on mandatory coverage in construction. For other industries, check with the WSIB directly instead of assuming either way.

Municipal and other licences

Ontario.ca says you may need licences and permits under federal, provincial or municipal rules, and recommends BizPaL, a free online tool that filters by location, industry and activity. Start at Check if you need licences and permits, then confirm with your municipality, especially for a home-based business, signage or food.

Insurance

Because a sole proprietor is personally liable, insurance matters more here than in a corporation. Which policies you need, and what they cost, depends on what you do. Ask an insurance broker, and ask your landlord and clients what they require. We have not published premium figures because we could not verify them on an official page.

Compared

Sole proprietorship, partnership, corporation

The pros and cons below come from the Government of Canada's Small Business Services guidance for Ontario and Ontario.ca. They are not tax advice.

Sole proprietorship compared with partnership and corporation in Ontario
	Sole proprietorship	Partnership	Corporation
Owners	One person	Two or more	Owned by shareholders
Personal liability	Yes. You are personally liable.	Yes. You and your partners are personally liable.	Limited. A separate legal entity.
Business name protected?	No	No	Yes
Registration	Renew every 5 years; $60 online to register or renew	Renew every 5 years; the fee page lists the same $60 for a general partnership	Annual filings and corporate records required
Setup cost	Lowest	Lower than incorporating	More than the other forms
Income tax	Taxable at your personal rate	Taxable at personal rates	May qualify for lower rates as a corporation

"May qualify" is the government's wording and is not a promise. Whether incorporating saves you tax depends on your income and your situation, which is a question for an accountant. For the fees and steps to incorporate, see our incorporation guide.

Moving on

When a sole proprietorship stops being enough

Common signs it is time to talk to a lawyer or accountant about changing structure:

The risk to your personal assets is bigger than you are comfortable with, for example you sign leases, hire people or sell products that could hurt someone.
You want a partner or investor, or you want to be able to sell or transfer ownership. The government lists transferable ownership as a corporation advantage.
You want name protection. A registered sole proprietor name is not protected.
Your income is high enough that the tax question is worth paying a professional to answer.

Many people start as a sole proprietor and incorporate later. If you are under 18, read making money under 18 in Ontario and youth entrepreneurship programs before you register anything. Ontario funds free advice through Small Business Enterprise Centres, and the grants guide covers what funding exists. To work out whether your idea is worth registering, Business 101 is free. The startup checklist lists every step in order.

Questions

Frequently Asked Questions

Do I have to register a sole proprietorship in Ontario?: Only if you carry on business under a name other than your own. Under section 2(2) of the Business Names Act, an individual may not carry on business or identify the business to the public under a different name unless it is registered. If you trade under your own name, the Act does not require registration. Licences, tax accounts and other rules can still apply.
How much does it cost to register a sole proprietorship in Ontario?: $60 for a new registration or a renewal online, according to the Ontario government's fee page (updated 29 September 2026). Amending or cancelling a registration online is $0. Searching the registry is free. Fees change, so confirm on the official page before you pay.
How long does a sole proprietorship registration last?: Five years. The registry's all-services page says the registration expires every five years and must be renewed from six months before to 60 days after the expiry date. Renewal is the owner's job.
Is a sole proprietorship a separate legal entity?: No. Ontario.ca describes it as a business owned by one person, and says the owner is responsible for all debts and losses and that creditors can take your personal assets as well as the business. That unlimited personal liability is the main reason people incorporate.
Do I need a business number or HST number as a sole proprietor?: The CRA says that if your business is unincorporated you only need a business number when you register for a program account, such as GST/HST or payroll. You are a small supplier, and do not have to register for GST/HST, if you have not exceeded $30,000 in taxable sales over four consecutive calendar quarters. You may register voluntarily. The CRA page sets out the single-quarter rule and the 29-day registration deadline.
How is a sole proprietor taxed?: You report business income on your personal return. The CRA names Form T2125, Statement of Business or Professional Activities, for business and professional income, and the income goes on lines 13500 to 14300 of the return. Ontario.ca says the income is taxable at your personal rate. Whether instalments apply to you depends on your tax owing; see the CRA page.
What was the Master Business Licence?: The Ontario Business Registry's all-services page says the Business Name Registration was formerly known as a Master Business Licence. If a guide or form still uses the old name, it means the registered business name, which is valid for five years.

Checked against the source

Sources

Read on 5 October 2026. Fees and thresholds change; the official page always wins over this one. How we research and correct guides is described in our editorial standards.

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