How to Start a Business inOntario
A step-by-step overview of what it actually takes to go from idea to operating business in Ontario — structure, registration, licensing, and financing.
This is general guidance, not legal, tax, or financial advice. Requirements vary by business type and municipality — confirm specifics with the Ontario Business Registry, a local municipal office, or a qualified professional before you register.
Choose your business structure
Sole proprietorship, partnership, or corporation — each has different liability, tax, and paperwork implications. Most first-time founders start as a sole proprietorship or incorporate once revenue and risk grow.
Register your business name
If you're operating under a name other than your own legal name, you'll need to register it through the Ontario Business Registry. Incorporated businesses register automatically as part of incorporation.
Get a Business Number and register for HST if applicable
A Business Number (BN) from the Canada Revenue Agency is required for most business activity. If you expect over $30,000 in annual revenue, you'll also need to register for and collect HST.
Check municipal licenses and permits
Many business types — food service, trades, home-based businesses — require a municipal business license or specific permits. Requirements vary by municipality, so check with your local city or township office.
Open a dedicated business bank account
Keeping business and personal finances separate makes bookkeeping, tax filing, and eventually financing far simpler — and is required for incorporated businesses.
Get the right insurance
General liability, professional liability, or industry-specific coverage (like WSIB for businesses with employees) protects you and is often required before you can legally operate or bid on contracts.
Write a real business plan
Even a lean startup benefits from thinking through market, pricing, operations, and financials before spending money — and it's required for most financing or grant applications.
Explore financing and support options
Ontario has small business loan programs, regional economic development grants, and community lenders. Requirements vary widely — a solid business plan is a prerequisite for almost all of them.
Launch and track your finances from day one
Set up basic bookkeeping before your first sale, not after. Clean financial records make tax time, financing applications, and eventually selling the business far easier.
Frequently Asked Questions
Step 7 Is the One Most People Get Wrong
A real business plan isn't just paperwork — it's how you catch problems before they cost you money. Let AI help you write one that's actually ready for a lender.
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