There is a vital role for businesses in Canada’s economy. As an entrepreneur, you will want to protect the value of your business and ensure it continues to grow. The master business license (MBL) is vital to this strategy and can help secure future growth. We know you have created a fantastic product and are eager to sell it in Mississauga, Ontario. Or you’re a business owner looking for a way to scale your business. Regardless of your goal, you need a valid license for it to be legal in Ontario. That’s why it is crucial to know what is a master business license.
A master business license is essential for the legal operation of your business. Because this license displays important information. Such as your company name, address, and business number.
Today, we will discuss different things about master business license. Like what is a master business license, and why is it necessary for Ontario firms? And how to apply for it. So, to get our bookkeeping services in Mississauga, you can go to our website, Yogi & Associates. We offer the service of Master Business License. And it will be our pleasure to walk you through the procedure.
What is a Master Business License in Ontario? Complete Guide
1. What is a Master Business License?
A master business license contains essential information about your business. For example, the business name, address, business number, and business activities. This license also describes the type of business you own. The business type may be a sole proprietorship, general partnership, and trade name.
Related: Please check our blog, How to Get Master Business License in Ontario: 2022 Guide
2. Why Do You Need a Business License?
The answer to why you need a business license depends on your business structure.
- A sole proprietor needs a business license if he wants to name a business other than its full name.
- Let’s suppose you incorporate your business. If the name of your corporation differs from the corporate name, such as a trading name. In that case, you will need a master license.
3. How to Apply For a Master Business License?
There are numerous ways to apply for a Master Business License:
1. Online Method
Online registration is quick and easy. You can do it through Ontario’s Service portal or another service provider.
2. By mail
You can register your business by mail if you don’t have access to the internet. However, registering by mail can take more time.
3. On the Spot
You can submit your application in person at any Service Ontario office if you live in Ontario. Service Ontario will send you the license through email after the procedure finishes.
4. What are the Benefits of a Business License?
A business license provides you with the following advantages:
- It gives your business with registration for up to 5 years.
- With your master business license, you can run your business name in Ontario.
- It provides you with a bank account, tax accounts, and business cards
- It helps to promote your business name
- It provides you access to discounted prices from the supplier.
5. Who can Register for a Business License in Ontario?
Due to the registration criteria, most adults can get an Ontario business license. If you are 18 or older, you can apply for an Ontario Master Business License. Also, the registration for a business license does not need citizenship or permanent residency, in contrast to incorporation.
Moreover, you should contact Immigration Canada if you are unsure whether your immigration status qualifies you for a Business License.
6. What are the Master Business License Requirements by Business Type?
As said earlier, anyone in Canada who is older than 18 can apply for a business license. Regarding the registrant’s status, there are no restrictions. Three different business formats in Mississauga must have a business license. These are listed below:
1. Sole proprietorship
For a business structure as a sole proprietor, the registration is available to the business’s sole owner. A sole director can also incorporate a company and register for a business license.
“What do you need to start a business? Three simple things: know your product better than anyone. Know your customer, and have a burning desire to succeed.” -Dave Thomas
2. General partnership
When two or more corporations wish to start a business, they can create a general partnership. So, it must register two or more individuals or corporations in Ontario.
3. Trade Name
Trade Name registration can be operated by an existing corporation that has been incorporated or imported into Ontario. You can register an unlimited number of trade names under your corporation in trade name.
7. What is the Cost of Registering a Business License?
You should be aware that you must create a NAUNS report to get a business license. This report can help you determine if someone else has a business with the same name as you. It also helps to figure out what other business names are registered like yours. These searches can cost between $8 and $26, depending on the records involved in your inquiry. The government charges a $60 filing fee to register a master business license online.
8. How to Cancel Your Master Business License?
Do you think that you cannot change the business license? Then don’t because changing the master business license is possible once you get it. For example, if you want to change your business’s name, you must cancel your previous permit. And then register a new one. You can visit Service Ontario and use Service Ontario’s online tool. Then follow the instructions for canceling your business license there.
When you close your business, you should cancel any licenses linked to your business. However, it is better to report CRA about the closure of your business license. This way, you can avoid an abrupt end of your business due to CRA’s audit.
9. What are the Limitations of a Master Business License?
Although, a master business license can include several capabilities. It still has some limitations. What the license doesn’t cover is as follows:
- Name protection in Ontario against competing enterprises
- Owner’s protection from liability
- Benefits of corporate taxes
- Automatic renewals of the registration
- After registration is complete, there is no flexibility to make modifications.
These few drawbacks lead young business owners to consider incorporating their organization. Thus, instead of obtaining a business license, you have the option of incorporation.
10. Bookkeeping Strategies For Your Business
A strong, well-structured bookkeeping system creates the foundation for a successful business. You’ll not only save time and money by keeping your financial data accessible and up to date, but you will also perform better in the long run.
One of the most important things you can do as a successful entrepreneur is to keep your books updated. With a bookkeeper’s help, it is considerably simpler. Therefore, we can help you meet your tax obligations and identify the taxes that apply to your business. Additionally, our bookkeeping staff can assist you in effectively managing your data. Thus, Yogi & Associates can help if you require an accounting firm for your objectives.
The Bottom Line!
In short, obtaining a master business license is an important step in starting a business. Thus, you must register a business license to ensure that you operate your firm legally. So, we have covered everything you need to know about a master business license in Ontario. Yogi & Associates, also provides the Master Business License service. So don’t hesitate to contact us if you face any problems applying for a business licence. We will enjoy assisting you during the entire procedure. So get in touch with Yogi & Associates. And get the best bookkeeping services in Mississauga!