Can You Start an LLC in Ontario?
No. There is no LLC in Ontario — or anywhere in Canada. It's a United States structure, and the Ontario Business Registry has no filing for it.
Ontario has four business structures: sole proprietorship, partnership, corporation, and co-operative. If what you want is limited liability — the thing "LLC" is shorthand for — the answer here is a corporation. Below is what each one actually gives you and costs you.
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The four structures you can actually register
Per the Government of Canada's Small Business Services guidance for Ontario.
| Structure | Limited liability? | In short |
|---|---|---|
| Sole proprietorship | No | You and the business are the same legal person |
| Partnership | No | You and the business are the same legal person |
| Corporation | Yes | Separate legal entity from you |
| Co-operative | Yes | Separate legal entity from you |
| LLC | — | Not a Canadian structure. Cannot be registered in Ontario. |
Sole proprietorship
One owner, unincorporated. The fastest and cheapest way to start, and the most common. You and the business are the same legal person.
Pros
- Quick and easy to register
- Lowest registration cost
- You receive all business profits directly
- You make every decision
Cons
- You are personally liable for the business
- Your business name is not protected
- Income is taxed at your personal rate
- Registration must be renewed every 5 years
Partnership
Two or more owners, unincorporated. Works like a sole proprietorship with the same liability exposure shared between partners.
Pros
- Quick and easy to register
- Lower cost than incorporating
- Profits flow directly to the partners
Cons
- You and your partners are personally liable
- Your business name is not protected
- Income is taxed at personal rates
- Registration must be renewed every 5 years
Corporation
Closest to an LLCA separate legal entity from its owner. This is the structure Canadians usually mean when they say LLC — it is where limited liability actually comes from in Ontario. You can incorporate provincially or federally.
Pros
- Your personal liability is limited
- Your business name is protected
- Ownership can be transferred
- May qualify for lower corporate tax rates
Cons
- Annual filings and corporate records are required
- Costs more to set up than the alternatives
- You may need to prove residency or citizenship
Co-operative
A corporation organized and controlled by its members, one member one vote. Can be set up for profit or not-for-profit, provincially or federally.
Pros
- Limited liability
- Profits distributed among members
- Democratically controlled — one member, one vote
Cons
- Conflict between members has to be resolved
- Decision-making can take longer
- Needs every member to participate to succeed
So what should you actually do?
If you want limited liability, incorporate. That's the real answer to the LLC question in Ontario. You can incorporate provincially through the Ontario Business Registry or federally through Corporations Canada — federal gives you name protection nationwide and suits a business operating in more than one province.
If you're testing an idea, a sole proprietorship is fine to start. It's the most common way to begin, it registers quickly and cheaply, and you can incorporate later. The trade-off is personal liability and personal tax rates. Register through the Ontario Business Registry, and renew every five years.
If you're unsure, the advice is free. Ontario has 52 Small Business Enterprise Centres offering free guidance to people starting a business. For liability exposure or anything cross-border, a lawyer or accountant is worth paying for.
This is general guidance, not legal, tax, or financial advice. Structure choice has real tax and liability consequences that depend on your situation — confirm with the Ontario Business Registry, a Small Business Enterprise Centre, or a qualified professional before you file.
The Ontario equivalent
How to incorporate in Ontario, step by step
If you searched for an Ontario LLC, this is the process you were looking for. Fees are the published figures at the time of writing (September 2026); the Ontario Business Registry and Corporations Canada pages are the authority if they differ.
- 1
Decide: Ontario or federal
Ontario incorporation suits a business operating only in Ontario. Federal incorporation through Corporations Canada protects the name across Canada and suits a business that will operate in more than one province; it then needs a free extra-provincial registration in Ontario. Both give the same limited liability.
- 2
Choose a name, or go numbered
A named corporation ("Maple Lane Studio Inc.") needs an Ontario-biased NUANS name search report dated within 90 days of filing, to show the name is not already taken. A numbered corporation ("1234567 Ontario Inc.") skips the search entirely and can register a business name to trade under later. The legal ending must be Inc., Incorporated, Ltd., Limited, Corp. or Corporation.
Cost: NUANS report from about $14 through the federal NUANS site; more through a private search house. Numbered: $0.
- 3
File articles of incorporation
Ontario: file online through the Ontario Business Registry with a My Ontario Account. Federal: file online with Corporations Canada. You name the directors, the registered office address in Ontario, and the share structure; a single class of common shares is the usual starting point for a one-person company.
Cost: Ontario $300 online. Federal $200 online.
- 4
File the Initial Return within 60 days
Ontario corporations must file an Initial Return under the Corporations Information Act within 60 days of incorporating, listing directors and officers. Federal corporations operating in Ontario file the equivalent extra-provincial initial return in the same window. Missing it is the most common early compliance slip.
Cost: $0
- 5
Get the CRA accounts
Incorporating creates a Business Number and a corporate income tax (RC) account automatically. Add a GST/HST account once taxable sales pass $30,000 over four consecutive quarters, or earlier if you want to claim input tax credits, and a payroll account before the corporation pays anyone, including you.
Cost: $0
- 6
Set up the minute book
Pass the organisational resolutions, issue shares to the owners, appoint officers, and adopt by-laws. Keep these in a minute book (a binder or a digital equivalent). Banks, investors and buyers will ask to see it, and the corporation's limited liability depends on it being treated as a real, separate entity.
Cost: $0 to do yourself; a lawyer or online service typically charges a few hundred dollars.
- 7
Open a corporate bank account and file every year
Bring the articles, the Initial Return confirmation, the Business Number and director ID to the bank. Then calendar the ongoing duties: an Annual Return to the Ontario Business Registry each year, a T2 corporate tax return within six months of the fiscal year-end, and HST and payroll returns on the schedule the CRA assigns.
Cost: Annual Return $0 in Ontario at the time of writing; accountant fees for the T2 are the main recurring cost.
The full sequence for any structure, including HST, licences and insurance, is in our guide to how to start a business in Ontario.
Frequently Asked Questions
Your next step
Structure sorted. Now the business itself.
Choosing between a sole proprietorship and a corporation takes an afternoon. Finding your first customer takes a plan. Launch League's free program covers idea, customer, pricing, marketing and numbers, then lets you pitch it for real.
Want the full plan written for you? The Elite Business Plan Maker drafts all nine sections for your industry, $79 once.
Keep going
- How to start a business in Ontario: 10 steps, costs and timelineStructure, registration fees, the HST threshold, licences, insurance, financing, and what order to do it in.
- Starting a business in Ontario: 17-step checklistEvery step with where to do it, what it costs and how long it takes; printable, saves your progress.
- Business plan template: nine sections, with fill-in promptsWhat goes under each heading, who reads it, how long it should be, and a copyable outline.
- Small business grants in Ontario: what's real in 2026Six non-repayable programs, the tax credits that pay cash, seven startup loans, and the closed programs still ranking in search.