If you have decided to take the plunge and start your own cleaning business in Ontario, congratulations, starting a business can be both exciting and overwhelming, especially when it comes to dealing with paperwork and legalities.
Even though many folks run their businesses in Ontario without proper registration, it is not advisable, the day you get caught, you will be forced to face the law and the punishment can be severe.
If you are nursing the idea of starting a business in Ontario, you need to register it, it is a simple legal thing to do and this guide will show you exactly how to do that right away.
How to register a cleaning business in Ontario
The first step you need to take to register your business is to choose an available name that best describes your business properly.
Choose a business name
To establish your cleaning business, you need to start by choosing a catchy and unique name. Make sure it reflects the services you offer and is not already in use by another company.
To do this, you need to conduct a business name search online and ensure its availability before picking it as your business name.
Do not forget that the name must reflect your business, be catchy, and have not been taken by another business owner.
Decide on a business structure
Ontario offers several business structures, such as sole proprietorship, partnership, or corporation. You can decide what you want your business to be like, consider your plans, and choose a structure that suits your needs.
Many cleaning businesses opt for sole proprietorship due to its simplicity and ease of setup, if this does not suit you, you can choose another structure. Any structure is allowed as long as it fits your ideas and plans.
Register your business
To legally operate your cleaning business, you need to register it with the Ontario government. Visit the official ServiceOntario website and complete the registration process.
When filling out the form online, you need to provide basic information about your business, including its name, address, and business activities. In some cases, you will also provide additional information like business targets and plans. Once you submit these details, you will initiate the registration process.
Obtain necessary licenses and permits
After completing your registration with ServiceOntario, you will need specific licenses or permits to operate legally depending on your location and the services you offer.
To get the license, you need to contact your local municipality to inquire about the necessary permits for your cleaning business. This step ensures you comply with local regulations.
In addition to local municipality licenses, there may be other licenses that are specific to cleaning businesses, you need to be sure that they exist and if they do, you should obtain them.
Register for goods and services tax/harmonized sales tax (GST/HST)
If your cleaning business is expected to earn more than $30,000 annually, you must register for GST/HST. This federal tax applies to most goods and services in Canada.
It is simple to register, you can register online through the Canada Revenue Agency (CRA) website obtain your business number, and set up your tax account.
Open a business bank account
After completing your tax registration, you need to get a separate account for your business, this will help you separate your personal and business finances.
This step is crucial for keeping track of your income and expenses, simplifying tax filing, and maintaining financial transparency.
Get business insurance
Your last dance will be to protect your business from unexpected events by obtaining appropriate insurance coverage. For most businesses, general liability insurance is essential to safeguard you from legal claims and accidents that may occur while providing your services. It’s a cleaning business so anything can happen.
If you can comfortably run a cleaning business in Ontario, starting it will be a rewarding venture. Once you are prepared for it, you need to do the proper registration. Register your name and tax information, if you don’t know how, you can follow the steps in this guide.
Navigating the process isn’t as daunting as it seems as long as you have all the requirements, registering your business is important, it ensures that you comply with all legal requirements