Starting an online store in BC: what you have to register, and when
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Some registrations apply from the first sale, some only past a threshold, and some only if you use a store name or import stock. Here is which is which.
Short answer: a BC online store selling under its owner’s own legal name does not have to register a business name. A store name means getting the name approved and registered with BC Registries. GST registration is required once taxable sales pass CAD 30,000 in four consecutive calendar quarters or in a single quarter. PST registration is needed for taxable goods sold in BC unless you qualify as a small seller. Importing stock commercially needs a CRA business number and an import-export account. Most cities also require a business licence, home-based businesses included.
What an online store registers, and when
| Registration | When you need it | Where |
|---|---|---|
| Business name | Only if you sell under a name other than your own legal name | BC Registries |
| CRA business number | When you open a CRA program account (GST, payroll, import-export) or incorporate | CRA |
| GST/HST account | Once taxable sales pass CAD 30,000 in four consecutive calendar quarters or one quarter; optional before that | CRA |
| BC PST | When you sell taxable goods in BC yourself, unless you are a small seller; marketplace facilitators collect on their sales | Province, through eTaxBC |
| Import-export (RM) account | When you import goods for sale | CBSA, using your business number |
| City business licence | In most cities, including for a home-based business | The city where you operate |
| Payroll account | When you hire your first employee | CRA |
The registry fees, and the steps for each structure, are in the guide to registering a business in BC.
Do I need to register a business to sell on Shopify, Etsy or Amazon?
Not to start, if you sell under your own legal name. The province says a sole proprietorship doing business under the owner’s personal name does not need to request a business name or register with the province. A store name, or your name with words added that suggest more than one person, has to be approved and registered first. The platforms ask for your legal name and tax details, not for a BC registration.
When does an online store have to charge GST?
Once its taxable sales, across every channel and worldwide, pass CAD 30,000 in four consecutive calendar quarters or in a single quarter. Below that you are a small supplier and registering is optional.
Many online stores register early, so they can claim input tax credits for the GST paid on stock, equipment, platform subscriptions and advertising, including, for a new registrant, inventory on hand on the day it registers. The cost is charging 5% on sales to consumers, and filing returns. The GST registration guide covers the trade-off.
Do I need a PST number to sell online in BC?
Usually, if you sell taxable goods to buyers in BC. The exception is a small seller: located in BC with no established business premises, and CAD 10,000 or less of gross revenue from taxable sales in the last 12 months and expected in the next 12, among other conditions. Selling online from home with no storefront can qualify. A small seller pays PST on the stock it buys for resale, so a store holding real inventory often registers anyway and buys that stock exempt.
Sales through a marketplace that acts as a facilitator are different again: the platform collects the PST. A seller whose taxable sales all go through facilitators that collect it may not need to register at all; Bulletin PST 142 covers that case, and the companion guide on who collects GST and PST sets out each channel.
Importing stock
To import goods for sale you need a CRA business number and an import-export (RM) account with the CBSA. GST is charged at the border, and a registrant can claim it back. BC PST may apply as well. The importing guide covers both.
Sole proprietor or company for an online store?
Most stores start as sole proprietorships, because it is quicker and cheaper. Three things push an online store toward incorporating sooner than a service business would:
- Stock. Profit spent on inventory is still taxable profit. A sole proprietor pays personal rates on it; a corporation pays the small business rate on profit it keeps, which leaves more to buy the next order.
- Product risk. Selling physical goods means supplier contracts, returns and product claims, and a corporation keeps those in its own name.
- Accounts. Shopify, Stripe, every marketplace seller account and the bank account have to be in the legal name of whichever you choose, so changing later means updating every one of them.
Whether incorporating pays depends on how much profit you leave in the business. The sole proprietor or corporation guide works through the cases.
What to set up before the first sale
Questions people ask
Do I need a business licence to sell online from home in BC?
In most cities, yes. Vancouver, Richmond and Port Coquitlam all require a business licence, home-based businesses included, and Vancouver limits how much of the home the business can use. Check the city where you live.
Do I need to register a business to sell on Shopify or Etsy in BC?
Not if you sell under your own legal name. A store name has to be approved and registered with BC Registries. Tax registrations are separate and depend on your sales.
Do I need a business number to sell online?
Only when you open a CRA program account, such as GST, payroll or an import-export account, or when you incorporate. Registering for GST gives you one.
When do I have to start charging GST on online sales?
Once taxable sales pass CAD 30,000 in four consecutive calendar quarters or in a single quarter. You can register earlier, and many stores do so they can claim input tax credits.
Do I need a PST number to sell on Shopify in BC?
If you sell taxable goods to BC buyers through your own store, usually yes, unless you are a small seller with no business premises and CAD 10,000 or less of taxable sales a year. Sales through a marketplace facilitator are collected by the platform. Registering also lets you buy stock for resale without paying PST.
Should an online store incorporate?
It depends on how much profit you leave in the business for stock and growth, and on the risks you carry. Many start as sole proprietors and incorporate once profit is steady.
Who collects GST and PST on each sales channel →
Registering a business in BC: steps and fees →
Sole proprietor or corporation? →
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