Do I need a business license to sell online in Canada?

Short answer is – yes. Any one running a business should get a business number which helps you identify yourself to CRA. It gives more value and legitimacy to your business in the eyes of clients, vendors, banks etc. 

Well now let’s talk about the exception to the rule. If you are simply testing the waters to try selling a few items online, then you can get away with not having a business number temporarily. As a sole proprietor, your income is reported on your personal income taxes. 

Whether you have a business number or not you still need to report that income on your personal tax return. Even if it is $100 revenue, technically it has to be reported (nice try!). 

As you get larger and you need to report sales tax, then really you have no choice because the business number you register is also associated with your sales tax number. Once your eCommerce business takes off and your intention firms up to continue long term – definitely register. 

Should you pay for a business registration?

You could – but you can easily do it yourself using BRO (Business registration online) portal provided by the government of Canada. Simply follow the steps and you will be well on your way!