How to register a small online business in Canada: beginner checklist

By FastBuySale Newsroom · 9 Nov 2026 · 33m ago

What this checklist covers

Starting an online business in Canada can be quick and inexpensive, whether you sell handmade goods, digital products or services. But registrations, sales taxes and consumer rules differ by province and level of government, and many new sellers are unsure where to start. This beginner checklist walks through the main steps in order and explains the general rules. Details vary by province and territory and change over time, so confirm with your provincial business registry, the CRA and your provincial tax authority before relying on any figure here.

1. Decide what you will sell and where

List your products or services and where your customers will be: your province, other provinces or other countries. Some products, such as food, cosmetics, natural health products, children's items and electronics, have specific federal or provincial requirements. Selling across provinces can bring extra sales tax obligations. Knowing this early helps you plan registrations correctly.

2. Choose a business structure

A sole proprietorship is the simplest structure: you and the business are the same for legal and tax purposes, and you report business income on your personal return. You are personally liable for business debts. A partnership involves two or more owners. A corporation is a separate legal entity that limits personal liability but requires more administration, such as annual returns, corporate tax filings and separate financial records. Many owners start as sole proprietors and incorporate when profits grow.

3. Register your business name

If you operate under a name other than your own legal name, most provinces require you to register it with the provincial business registry. Fees and terms vary, and registrations may need renewal every few years. Search existing names first and consider whether a trademark makes sense. If you trade only under your full legal name, registration may not be required.

4. Or incorporate

You can incorporate federally through Corporations Canada, which protects your corporate name across the country, or provincially, which is often cheaper if you only operate in one province. Federal corporations must also register extra-provincially in provinces where they carry on business. Incorporation involves articles of incorporation, a registered office, directors and corporate records. Consider professional advice before incorporating.

5. Get a Business Number

The CRA issues a nine-digit Business Number used for program accounts such as GST/HST, payroll and import-export. Corporations receive one when they incorporate. Sole proprietors need one when they register for GST/HST or other programs. You can register online through the CRA's business registration service.

6. Understand GST/HST

Most goods and services sold in Canada are subject to GST, or HST in participating provinces. You are a small supplier and do not have to register if your worldwide taxable supplies are 30,000 dollars or less in a single calendar quarter and over the last four consecutive calendar quarters. Once you exceed the threshold, you must register and start charging tax. Registered businesses can claim input tax credits for GST/HST paid on business purchases. Voluntary registration below the threshold is possible and can make sense if you buy a lot of taxable inputs.

Worked example: crossing the threshold

Mei's online candle shop sells 6,000 dollars in the first quarter, 7,000 dollars in the second, 8,500 dollars in the third and 9,500 dollars in the fourth. Her four-quarter total is 31,000 dollars, above the 30,000 dollar threshold. She stops being a small supplier at the end of the month after the quarter in which she crossed it and must register within 29 days of her first taxable sale after that. Tracking her rolling total each quarter helps her plan. The percentage calculator on this site helps her check how adding tax changes her prices.

7. Check provincial sales taxes

British Columbia, Saskatchewan and Manitoba have their own provincial sales taxes, and Quebec has the Quebec Sales Tax. Some of these provinces require online sellers outside the province to register once their sales to customers in the province pass a threshold. Check the rules for each province where you have customers.

8. Open a business bank account

A separate account keeps business and personal money apart, makes records simpler and looks more professional to customers and payment providers. Corporations need a separate account. Compare fees and features.

9. Set up your store and payments

Choose a platform, marketplace or your own website, and connect a reputable payment processor. Display prices in Canadian dollars where you sell to Canadians, and show taxes and shipping costs clearly before checkout.

10. Follow internet sales rules

Provincial consumer protection laws set rules for online contracts with consumers. They typically require sellers to disclose who they are, contact details, a description of goods or services, the total price including taxes and delivery, delivery dates, and cancellation, return and refund policies, and to provide a copy of the contract. Failing to disclose required information can give consumers the right to cancel.

11. Follow anti-spam rules

Canada's anti-spam legislation generally requires consent before you send commercial electronic messages, such as marketing emails or texts. Messages must identify the sender and include a working unsubscribe option. Keep records of consent.

12. Protect customer privacy

Federal privacy law applies to the collection, use and disclosure of personal information in commercial activities in most provinces, with similar provincial laws in some. Collect only what you need, protect it, explain how you use it in a privacy policy and respond to customer requests about their information.

13. Labelling and product rules

Many consumer products sold in Canada must have labels in English and French, with certain information such as product identity and net quantity. Specific products have extra rules. Check the requirements for what you sell.

14. Importing stock

If you import goods for sale, you may need a Business Number with an import-export account, register with the CBSA's systems, and pay duties and taxes. Customs brokers can help.

15. Insurance and licences

General liability and product liability insurance protect your business. Some municipalities require business licences, even for home-based businesses. Check local rules.

16. Keep records

Keep books and records, including sales, receipts and invoices, for at least six years. Accounting software makes tax filing and GST/HST returns easier.

17. Report income and pay tax

Sole proprietors report business income and expenses on their personal tax return using the business income form and pay income tax and both portions of CPP contributions on net earnings. They generally have until June 15 to file, but any balance owing is due by April 30. Corporations file a separate corporate tax return and may benefit from the small business deduction on active business income. Keep money aside throughout the year, because no tax is withheld from business income.

18. Selling on marketplaces

Many new sellers start on established marketplaces before building their own store. Marketplaces bring traffic and handle payments, but they charge fees and set rules on shipping times, returns and prohibited products. Some marketplaces collect and remit GST/HST on certain sales on behalf of sellers, which can affect your own filings. Read each marketplace's seller terms and work out your margin after fees.

19. Protect your brand

Register a trademark with the Canadian Intellectual Property Office if your brand name is important to your business. Secure matching domain names and social media handles early to avoid confusion later.

20. Review your setup each year

As your business grows, review whether your structure, registrations and insurance still fit, and whether new provinces or countries bring extra obligations.

21. Know where to get help

Provincial small business centres, Business Development Bank resources and community business advisers offer free or low-cost guidance for new owners, and an accountant can help with structure and tax as you grow.

22. Set reminders

Put renewal dates, tax deadlines and GST/HST filing dates in a calendar so nothing is missed.

Reader questions

Have a question about starting a business in Canada? Send it through the Ask page on this site.

Disclaimer

This article is for general information only and is not legal or tax advice. Rules vary by province and change; check provincial registries, the CRA and other official sources for current requirements.

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