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Is there an LLC in Ontario or Canada?

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 main business structures: sole proprietorship, partnership, corporation, and co-operative (limited partnerships and professional LLPs also exist). 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.

By , founder, U.S. Air Force veteranPublished Last reviewed How we research and correct this

Your options

The four structures you can actually register

Per the Government of Canada's Small Business Services guidance for Ontario.

Ontario business structures and whether each provides limited liability
StructureLimited liability?In short
Sole proprietorshipNoYou and the business are the same legal person
PartnershipNoYou and the business are the same legal person
CorporationYesSeparate legal entity from you
Co-operativeYesSeparate 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 LLC

A 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

The answer

So what should you actually do?

General guidance

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.

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. Both give the same limited liability; federal gives you name protection nationwide, and either type still registers extra-provincially in each other province where it carries on business.

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 funds a network of 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.

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.

The full sequence for any structure, including HST, licences and insurance, is in our guide to how to start a business in Ontario.

  1. Decide: Ontario or federal

    Both give the same limited liability. Federal incorporation through Corporations Canada gives name protection across Canada. Either type still registers extra-provincially in each other province where it carries on business (a federal corporation registers in Ontario for free). Ontario incorporation is usually simpler if you'll only operate here.

  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: Ontario-biased NUANS report from an authorized search provider (fees vary). Federal online filing includes the name search. 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 Form 2 (free) within 60 days of starting business in Ontario. 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 in a single calendar quarter or over four consecutive calendar 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, due within six months of fiscal year-end, 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.

Questions

Frequently Asked Questions

Can I register an LLC in Ontario?
No. There is no LLC in Ontario, or anywhere in Canada. The Government of Canada's own Small Business Services page for Ontario lists four main structures: sole proprietorship, partnership, corporation, and co-operative (limited partnerships and professional LLPs also exist). The Ontario Business Registry has no LLC filing because the entity does not exist in Canadian law.
What is the Canadian equivalent of an LLC?
A corporation. When people say LLC they usually mean "limited liability without a lot of paperwork", and in Ontario limited liability comes from incorporating. A corporation is a separate legal entity from you, which is what caps your personal exposure. It costs more to set up than a sole proprietorship and requires annual filings and corporate records.
Does Canada have LLCs?
No. Not in Ontario and not in any other province or territory. LLC is a United States structure created by US state law, and no Canadian jurisdiction has an equivalent filing. Canadian limited liability comes from incorporating, which produces a corporation — a different thing with different rules, different tax treatment and different paperwork.
What does LLC stand for, and what does it mean in Canada?
LLC stands for limited liability company. In the United States it is a specific entity type registered with a state. In Canada it means nothing in a legal sense — there is no form to file and no registry entry to create one. When a Canadian says "I want an LLC", what they almost always mean is "I want limited liability", and here that comes from incorporating.
Is a limited liability company the same as a limited liability corporation?
They get used interchangeably, but in the United States they are not the same thing: an LLC is a company, and a corporation is a separate structure with shareholders and directors. "Limited liability corporation" is a common misnomer for an LLC. In Canada the distinction does not arise, because neither is a filing type here — you incorporate, and what you get is a corporation.
Can an LLC be a sole proprietorship?
No, and the difference is the whole point. A sole proprietorship is not a separate legal entity: you and the business are the same person, which is why you are personally liable for everything it does. A US LLC is a separate entity from its owner, which is where the limited liability comes from. In Ontario you can register a sole proprietorship, but it does not limit your liability — a corporation is what does.
How do I set up an LLC in Canada if I need limited liability?
You do not set up an LLC — you incorporate. That can be done federally through Corporations Canada or provincially through the Ontario Business Registry, and both give the same limited liability. The steps, costs and the federal-versus-provincial trade-off are set out above. If you are choosing structure for tax reasons rather than liability reasons, an hour with an accountant before you file is worth more than any article.
Should I incorporate federally or in Ontario?
Both give the same limited liability. Federal incorporation gives name protection across Canada. Either type still registers extra-provincially in each other province where it carries on business. Ontario incorporation through the Ontario Business Registry is usually simpler if you'll only operate here. Either way you may be asked to prove residency or citizenship.
Do I have to incorporate to start a business in Ontario?
No. A sole proprietorship is the most common way to start and can be registered quickly and cheaply through the Ontario Business Registry. The trade-off is that you are personally liable for the business, your name isn't protected, and profits are taxed at your personal rate. Many people start as a sole proprietor and incorporate later when liability or tax makes it worth the paperwork.
I already have a US LLC. Can it operate in Ontario?
A business formed outside Canada usually needs to register in Ontario before carrying on business here; whether and how a US LLC does that is a question for an Ontario lawyer. The tax side is the genuinely complicated part — how a US LLC is treated for Canadian tax purposes is a cross-border question with real consequences, and it is worth paying a cross-border tax accountant for an answer specific to your situation rather than relying on any general article, this one included.
Why do so many search results talk about an Ontario LLC?
Because the term is borrowed from the United States, where the LLC is a real and very common structure, and a lot of content is written for a US audience or generated without checking which country it applies to. If a page explains how to "form an Ontario LLC", it is describing something that cannot be filed.

Your next step

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