So, you’ve decided to start your own business in New Brunswick? Congratulations! Whether it’s a cute coffee shop in Fredericton or an artisanal soap business in Saint John, registering a sole proprietorship in New Brunswick is your first step toward entrepreneurial glory. Don’t worry—we’ll make this process as painless as sipping a Tim Hortons double-double.
In this guide, we’ll cover everything from the basics of a New Brunswick sole proprietorship to a step-by-step example of how to register, and we’ll even answer the most common questions people have.
What is a Sole Proprietorship in New Brunswick?
Let’s start with the basics. A sole proprietorship is the simplest way to own a business. It’s just you—and your brilliant ideas—running the show. There’s no complex corporate structure, no board meetings, and no fancy jargon like “shareholders” or “directors.”
Key Features of a Sole Proprietorship
- Single owner: You are the boss. All profits are yours, and, well… all the responsibilities too.
- Easy setup: Much easier than incorporation. You can get started in a day or two.
- Personal liability: Yep, the flip side is you’re personally responsible for any debts. So maybe keep that credit card receipt handy.
- Tax simplicity: Income is reported on your personal tax return, keeping things straightforward with the Canada Revenue Agency (CRA).
Sole Proprietorship vs Corporation in New Brunswick
Let’s compare the Sole Proprietorship in New Brunswick with the Corporation, so you could make a better decision.
| Feature | Sole Proprietorship | Corporation |
|---|---|---|
| Ownership | Single owner | One or more shareholders |
| Legal Status | Not separate from the owner | Separate legal entity |
| Liability | Owner has unlimited personal liability | Shareholders have limited liability |
| Cost to Start | Low ($59 for trade name registration) | Higher (approx. $250–$300 for provincial incorporation) |
| Registration | Register trade name with New Brunswick business registry | Incorporate provincially via Service New Brunswick or federally via Corporations Canada |
| Taxation | Income reported on personal tax return | Separate corporate tax; potential tax planning benefits |
| Decision-Making | Full control by owner | Decisions made by board of directors; formal meetings required |
| Compliance Requirements | Minimal; renew trade name periodically | Annual filings, corporate records, financial statements required |
| Profit Distribution | All profits go to owner | Profits can be reinvested or paid as dividends |
| Continuity | Ends with owner’s decision or death | Continues independently of shareholders or directors |
| Privacy | Owner’s name is public | Directors’ and shareholders’ information is part of corporate record but offers more flexibility for anonymity in operations |
| Best For | Small businesses, low-risk ventures, sole operators | Businesses seeking growth, investors, or limited liability protection |
Why Choose a Sole Proprietorship in New Brunswick?
You might be thinking, “Why not just jump straight to incorporating?” Well, there are a few reasons a sole proprietorship New Brunswick is perfect for beginners:
- Low cost: No hefty incorporation fees here.
- Full control: Decisions are 100% yours. No meetings, no approvals, just you and your vision.
- Flexibility: Easy to change direction if your business pivots from cupcakes to cat yoga.
- Simplicity: Fewer regulatory requirements mean more time to focus on your business (and maybe your TikTok strategy).
How to Register a Sole Proprietorship in New Brunswick
Alright, now the juicy part: the registration process. Don’t worry, it’s easier than assembling IKEA furniture (and there’s no missing Allen key to curse at).
Step 1 – Choose Your Business Name
Before you register a sole proprietorship in New Brunswick, you need a name. Keep it memorable, easy to spell, and preferably something that won’t get you a cease-and-desist letter from the neighbor’s dog-walking business. To make sure this name is unique you will have to do a NUANS name search and obtain a NUANS report. Use the trusted service providers, like Nuans Canada Online to get this report.
Step 2 – Decide on Your Business Structure
In New Brunswick, a sole proprietorship can operate under:
- Your personal name (e.g., Jane Smith)
- A registered trade name (e.g., Jane’s Jazzy Cupcakes)
If you choose a trade name, you must register it with the New Brunswick business registry.
Step 3 – Register with the Government
Here’s the moment of truth. You’ll need to register a sole proprietorship in New Brunswick through Canada Incorporation Agency.
What you’ll need:
- Your chosen business name
- Owner’s personal information
- Business address
- Type of business activity
You can register online. Online is fast and convenient—perfect for those of us who avoid human interaction before 10 a.m. Just fill out a simple online form on our website, it will take around 10 minutes, complete the payment – and we will email the confirmation letter to you.
Step 4 – Get Your Business Number
Once registered, you’ll receive a Business Number (BN) from the CRA. This is your ticket to:
- Collecting GST/HST
- Hiring employees
- Opening a business bank account
Step 5 – Open a Business Bank Account
Even if your business is a one-person show, separating your personal and business finances is a good idea. Plus, it makes you look super professional when you inevitably get an investor or a very impressed neighbor.
Example: Registering a Sole Proprietorship in New Brunswick
Let’s make this real. Imagine you want to start “Frosty’s Ice Cream” in Moncton.
- Choose a name: Frosty’s Ice Cream
- Check availability: Conduct the NUANS name search
- Register online: Submit your trade name registration via Canada Incorporation Agency
- Receive your BN: CRA sends your business number
- Open bank account: Your ice cream money stays separate
And just like that, you’re officially a sole proprietor in New Brunswick.
Tips for a Smooth Registration Process
- Double-check your business name spelling. Typos can haunt you forever.
- Keep your registration documents handy—you’ll need them for taxes and permits.
- Consider liability insurance. Just because you’re small doesn’t mean life can’t throw sprinkles on your plans.
- Keep track of deadlines for renewing your registration every few years.
Common FAQs About Sole Proprietorships in New Brunswick
Do I need a lawyer to register a sole proprietorship?
Not really. The process is straightforward, and you can handle it yourself online. But if you want peace of mind or are worried about intellectual property, a consultation with Canada Incorporation Agency isn’t a bad idea. Just call us at 647-945-8893.
How much does it cost to register?
Registering a New Brunswick sole proprietorship costs about $99 for a trade name registration. Online registration is usually faster and sometimes cheaper.
Can I operate in multiple locations?
Yes! You’ll just need to update your registration with the New Brunswick business registry if you open additional locations.
How long does registration take?
Online registration can be done in minutes. Paper applications take a bit longer, but usually within a week or two.
What taxes do I have to pay?
Income from a sole proprietorship is reported on your personal tax return. Depending on your revenue, you may also need to collect GST/HST.
Wrapping It Up
Starting your business is exciting, and registering a sole proprietorship New Brunswick is your first step toward financial freedom and entrepreneurial adventure. Whether it’s cupcakes, ice cream, or cat yoga (we don’t judge), the process is simple, affordable, and fast.
Remember: check the New Brunswick business registry, register your trade name, get your BN, and separate your finances. Follow these steps, and you’ll be on your way to running a successful business while sipping your celebratory latte.
