How to Form an Individual Business in Quebec.
One-person firms, often known as sole proprietorships, provide a number of benefits to entrepreneurs in Quebec. They are simple organizational forms that are easy to establish in a short amount of time and, in certain instances, may not need for registration.
Read on to learn everything you need to know about how to register your business as a sole proprietorship if you are thinking about running your company in Quebec as a self-employed individual or independent contractor. If you are thinking about doing either of these things, you should read this article.
What exactly does it mean to be a single proprietor?
The sole proprietorship is the predominant form of organization seen in Canadian businesses. According to what the term “sole proprietor” suggests, a sole proprietor is a single individual who runs a business as a self-employed individual or as an independent contractor.
Because a sole proprietorship is not legally distinct from its owner in the same way that a corporation is, the owner is fully responsible for meeting all of the financial and legal commitments made by the company. Additionally, the owner of the company is responsible for paying any applicable taxes on their own income.
What are the advantages of operating a business on your own?
When compared to registering your firm under one of the other business formats, single proprietorship registration is simple, quick, and inexpensive. It’s possible that this is the best option for you if you want to get your company up and running fast and don’t have any rapid growth plans in the works.
What are the benefits of operating a business as a sole proprietorship with regard to taxes?
There may be specific tax considerations and other advantages for your firm that you are eligible for as a single proprietor, but they may vary depending on the revenue you produce.
Simple income taxes
When your firm is a single proprietorship, it is much simpler to submit your personal income taxes than when your company is incorporated.
deductions for use of a home office
If you run your sole proprietorship out of your house, you may be eligible to deduct a portion of your living costs, such as those for utilities and internet service, in order to lower the amount of income tax you owe on your personal return.
The figures for the GST and QST
If any of the following conditions are met by your company, you are required to register for a GST and QST number:
Your company is responsible for paying taxes in Canada since it offers taxable goods or services.
Over the course of the last year, your company has produced more than $30,000.
It is possible that registering for GST and QST numbers before your company has earned $30,000 in revenue can be beneficial to you in certain circumstances. This is due to the fact that after you have registered for the federal and provincial tax numbers, you will be able to do the following:
Charge customers the amount that is taxed.
You are eligible to get a tax credit for any GST or QST that you have paid as a consequence of your company costs.
In Quebec, a sole proprietorship is the norm.
Ownr makes it easy and quick to register your company in Quebec as a single proprietorship so you may do business there. The Registraire des entreprises has to be able to gather correct information about all businesses and persons that are operating in the province, which is why your company needs to be registered.
Creating an account to register a sole proprietorship
Even if you run your company as a single proprietor, it doesn’t mean you have to do everything by yourself!
. You will also get access to exclusive bonuses, an unlimited number of company name searches, and live chat with the customer success team to ensure that you receive all of the assistance you need.
Ownr allows you to register your company as a sole proprietorship in a matter of minutes for a one-time price of only $49. This fee covers limitless name searches. Additionally, you will receive that money back from RBC if you create a business bank account with them during the next sixty days. Find out how to get started right now.
When are one-person businesses need to have their business registered?
Within the first 60 days of beginning operations, business owners in Quebec are often required to register their companies with the provincial government. When establishing your company in Quebec, there are three primary situations that you must take into consideration.
A business that is owned and operated by a single person and uses that person’s legal name.
There is no need for you to register your company in Quebec if you are doing it under your exact first and last name or under your exact name with an addition (such as a description of the region in which you provide services). Registering oneself as a natural person is the term used to describe this process.
For instance, if you go by the name John Smith while doing business or if the name of your company is John Smith Woodworking.
A person or entity that does business on their own under their own name.
However, you will be required to register that business if you do business under a name that is distinct from either your legal name or your business name, even if the difference is quite minimal. Visit the website of Légis Québec for further information and a list of the exemptions.
For example, since it does not have the complete legal name, a company that goes by the name John’s Woodworking would be required to register.
Exceptions made according to the sector
Even if you use your real name as the name of your business, you are obliged by law to register your company if it sells tobacco or is a tanning salon within the first thirty days of commencing operations. This is the case even if you use your full legal name as the name of your firm.
Instructions for registering a business as a single owner in Quebec
You will be required to do a name search in Quebec if you are registering your company as a sole proprietorship by yourself. This is done to check that your business name is not already in use somewhere else in the province. This name has to be written in French, but you’re free to provide it a translation into another language as well.
Form of declaration required for registration
In order to have your company registered, you will need to fill out a declaration of registration form, which may be found online in French. The following items will be on this form:
Your name in addition to any additional names that you use while doing business in Quebec, if applicable.
Your residential and commercial address in the province of Quebec
Your major activities (sectors of operation)
Your contact information
a representative’s name, address, and signature, if they are permitted to do so
Where to hand in the completed form
Through the service “Démarrer une entreprise,” you will have access to the forms in an online format. This service will guide you through the process of registering your business from beginning to end. Please be aware that the French language is the only one supported by this service.
You also have the option of completing the forms and submitting them in person at one of the registrar offices, which are situated in Quebec City and Montreal, respectively.
Those who live outside of Quebec City and Montreal have the option of mailing the forms to the Registraire des entreprises. This option is available to them. Visit their contact page for more specific location information.
Make sure the registration money is paid.
As of the year 2022, the cost to register a business in the province of Quebec as a sole proprietorship is $37 for the declaration of registration, $37 for yearly registration, or $55.50 for priority service.
The turnaround time is normally approximately one business day, however it may be virtually quick if you are not declaring a business name for your sole proprietorship and there are no problems with the company name.
Ongoing things to think about
After you have successfully established your business as a sole proprietorship, you will need to renew your registration and pay the yearly fee each year in order to keep your business legally recognized. This will have an annual fee of $37, and company owners will also need to submit a document to declare that their information has been updated yearly in order to maintain compliance.
In the event where there are no modifications to report, a joint tax return for the sole proprietorship and the legal person must include a statement stating that all of the information has been brought up to date (business owner). See additional information regarding join filing on the Registraire des businesses site.
Questions and Answers Regarding the Registration of Sole Proprietorships in Quebec
What are the fees involved in registering a company in the province of Quebec?
In Quebec, the charge for submitting a declaration of registration is $37 (or you may request expedited turnaround for an extra fee), in addition to the cost of completing a search for a company name.
You have the option of searching for a company name on your own in the Enterprise Registry at no cost to you, or you may pay a fee to one of the many service providers.
Ownr’s registration price for a sole proprietorship is just $49, saving users money (including government filing fees). In addition, you will get a reimbursement of one hundred dollars from RBC Bank if you create a business bank account with them during the first sixty days. Get going right away.
What are the steps involved in obtaining a NEQ number in Quebec?
An NEQ is a numeric identification that has 10 digits and is used to identify your company in order to make transactions with various government organizations easier. When you register your company with the Registraire des entreprises, your NEQ will be sent to you immediately thereafter.
As a business that operates under my own name, how do I submit my taxes?
If you run your business as a single proprietor, you are responsible for reporting all of your revenue on your individual tax return.
