How to Register a Sole Proprietorship and Get a GST/HST Number in Canada

What a sole proprietorship actually is

It's you, doing business. No corporation, no partners, no legal separation between you and the business. You keep all the profit — and you're personally on the hook for all the debt. It's the simplest, cheapest way to start, and the right choice for most freelancers, contractors, and side businesses.

The trade-off in one line: simple and cheap to run, zero liability protection. When the money or the risk gets serious, talk to an accountant about incorporating.

Step 1: Register your business name with your province

Skip this only if you operate under your exact personal name. Otherwise, register:

Ontario

• Register through the Ontario Business Registry — about $60 online ($80 by mail or in person)
• You get a Business Name Registration plus a 9-digit Ontario Business Identification Number (BIN)
• Valid for 5 years, then renew

British Columbia

• $30 name request first (approved name reserved for 56 days), then $40 registration — $70 all-in
• Done through the BC Registry

Other provinces

Every province has its own registry and fee schedule — typically $40–$80 for a sole proprietorship. Search "[your province] register sole proprietorship" and use the government site, not a third-party filer that marks it up.

Step 2: Get a CRA business number

Free, through the CRA's Business Registration Online. Your 9-digit business number (BN) is the root identifier for everything tax-related: GST/HST, payroll, corporate tax if you incorporate later. One BN, with suffixes per program account (RT for GST/HST, RP for payroll).

Step 3: Know the $30,000 GST/HST rule

This is the part people get wrong, so here's the rule straight:

You must register for GST/HST once your taxable sales exceed $30,000 over four consecutive calendar quarters — or $30,000 in a single quarter.

Three details that trip people up:

1. It's sales, not profit. $35,000 in revenue with $6,000 in your pocket is still over the line.
2. It's rolling, not calendar-year. You check the current quarter plus the previous three, continuously.
3. Miss it and you pay anyway. The CRA treats you as registered from the date you should have been — meaning you owe the GST/HST out of your own pocket on sales you never collected it on. This is the single most expensive GST mistake new businesses make.

Under $30,000 you're a small supplier and registration is optional. Exceptions: taxi and ride-share drivers must register regardless of income, and businesses selling only exempt goods/services (like music lessons or medical supplies) generally don't register at all.

Source: Canada Revenue Agency — GST/HST registration.

Step 4: After you register

• Charge it from your effective date. Mandatory registration takes effect the day you cross the threshold; voluntary registration starts on a date you choose. Charging GST/HST before you're registered isn't allowed.
• Show it on every invoice as a separate line, with your business number. Your business customers need both to claim their own input tax credits.
• File on schedule. Most small businesses file annually (up to $1.5M in taxable sales), quarterly from $1.5M–$6M, monthly above $6M.
• Claim input tax credits. Every dollar of GST/HST you paid on business expenses — equipment, software, rent, professional fees — comes back to you. This is the main financial reason to register voluntarily early.

The quick method (optional, worth knowing)

Eligible small businesses can elect the quick method: instead of tracking every input tax credit, you remit a flat percentage of your sales and keep the difference. Less paperwork; for service businesses with few taxable expenses it can even mean remitting less. Run the numbers before electing it — switching back and forth has restrictions.

Startup checklist

• Business name registered with your province (~$40–$80)
• CRA business number obtained (free)
• Tracking revenue against the $30,000 rolling threshold
• GST/HST account opened when required (or voluntarily, for input tax credits)
• Invoices show GST/HST separately with your business number
• Separate business bank account (banks will ask for your registration document)