A Step-by-Step Guide to Registering a Business and HST in Ontario

Looking to start a business in Ontario? If so, then your next step is to register your business and get Business Number and signup to to collect and remit Harmonized Sales Tax . This might sound like a daunting process, but it doesn’t have to be. In this guide, we’ll walk you through the essential steps to register your business and meet HST requirements in Ontario.

Step 1: Choose a Business Name :

The first and most important step in registering your business name is ensuring that the name you plan to use is unique and not already in use. Confirm that your desired name is not already in use, then register it online through the Ontario Business Registry (ONBIS) or at a convenient ServiceOntario center.

Step 2: Business Structure and Registration:

Once you have settled on a business, you will need to select an appropriate business structure for your type of business. Decide if your business is a sole proprietorship, partnership, or incorporation. If your business is a sole proprietorship, you generally will not need to register your business name. In any other business scenarios, you will need to register your name either as your legal corporate name or a trade name.

Step 3: Obtain a Business Number (BN):

Once you have registered your business name and type, you will need a Business Number that will be used to interact with government agencies, including the Canada Revenue Agency (CRA). The easiest way to obtain a Business Number through Business Registration Online (BRO) service on the CRA website. This unique number is essential for collecting and remitting your taxes.

Step 4: Register for HST:

If your business’s total revenue is more than $30,000 each calendar quarter or over four consecutive quarters, HST registration is mandatory. You can use the BRO portal to register for HST. and properly collect and remit the required taxes on your taxable supplies and services.

Step 5: Understanding HST Filing Periods:

After registering your business for HST, you should become familiar with the CRA’s tax filing periods. All businesses are required to file HST returns either annually, quarterly, or monthly, depending on the volume of their sales. Ensure you know your requirements and you comply with your required reporting schedule to avoid penalties.

Step 6: Maintain Accurate Records:

Keep detailed records of all of your business’’ sales, expenses, and any collected HST. This documentation is necessary during tax audits and filing your HST returns.

LedgersOnline Can Help

Seeking professional advice, such as from an accountant or bookkeeper, can be valuable in navigating the complexities of business registration and taxation. LedgersOnlines’ team of expert bookkeeping and accounting professionals can help guide your business through the process of business registration and HST filing. Schedule a call and see for yourself.

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