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Ontario|Business LawSole Proprietorships 207 Registering a sole proprietorship The business name of a sole proprietorship must be registered unless it is the name of the sole proprietor. For example, if you call your business by your own name, John Smith, you do not need to register the business name. However, if you decide to call the business John's Ice Cream, then you must register the business name.
- Why register a business name?
There are two reasons why you will need to register a business name. First, you will need to show your copy of the business name registration when you set up a bank account for your business. Second, the law requires that you register your business name unless you are using your own name. This helps to ensure that a particular name is not used by more than one business. The goodwill or familiarity that goes with a particular business name is very important and valuable. You must make sure that the business name you want is not already being used. If you use a name that another business is already using, you may have to change your business name and pay compensation to that business.
- Required by law to register a business name
Even if you are not concerned about someone using your business name, you are required by law to register it. If you do not register the name of your sole proprietorship within 60 days of creating your business, you may be fined up to $2000. You can register your business name at the Companies Branch of the Ministry of Consumer & Business Services for a fee of approximately $60. The form is quite simple and you will probably be able to complete it on your own. However, if you need advice or a legal opinion about your business name or about choosing a sole proprietorship as your form of business, you should contact a lawyer.
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