Guidepost

How to Start a Business in Ontario (2026)

Registration, tax accounts, and structure comparison — everything you need to get your Ontario business set up legally.

Get your Ontario business setup package — $14

Structure comparison, registration checklist, tax registration guide, and first-year compliance calendar.

Informational guide only. Guidepost is not a law firm. This guide explains the typical process and is not legal advice. Requirements can change — verify current rules with your provincial registry before completing your transaction.

Business Structures in Ontario

Sole Proprietorship

Registration: Register if using a name other than your own legal name (Business Names Act)
Liability: Unlimited personal liability
Tax: Income taxed as personal income; report on T1 Schedule T2125
Best for: Freelancers, consultants, very low-risk work

Partnership

Registration: Register business name; partnership agreement recommended
Liability: Joint and several unlimited personal liability
Tax: Income passes through to partners; each files T1
Best for: Two or more founders with low-risk business

Ontario Corporation (Inc.)

Registration: Articles of Incorporation via ServiceOntario or OnCorp
Liability: Limited to investment (personal assets protected)
Tax: Corporate tax rate; salary/dividends to owner; small business deduction may apply
Best for: Higher risk, growth-oriented, or professional businesses

Federal Corporation

Registration: Articles of Incorporation via Corporations Canada
Liability: Limited liability; can operate across Canada
Tax: Same as provincial but federally chartered; must also register provincially to operate in Ontario
Best for: Businesses that need national name protection or will operate in multiple provinces

Registration Details — Ontario

Provincial Registry

Ontario Business Registry (OBR), ServiceOntario

Official registry →

Sole Proprietorship / Trade Name

Registration required for trade names$60 (online) / $80 (in person) for 5 years

If you operate under your own full legal name (e.g., "Jane Smith Consulting"), no registration required. Any other name requires registration.

Register here →

Provincial Corporation

Filing fee: $300 (online via ServiceOntario)

Ontario corporation name must be approved (NUANS name search required — fee varies by provider). Directors must provide a registered address in Ontario. Annual return required (no filing fee).

Incorporate provincially →

Federal Corporation (optional)

Filing fee: $200 (online via Corporations Canada)

Federal corporations can operate nationwide but must also register in each province where they carry on business.

Incorporate federally →

Tax Registration in Ontario

CRA Business Number (BN)

Register for a Business Number (BN) at CRA My Business Account or by calling 1-800-959-5525. The BN is the foundation for HST, payroll, and import/export accounts.

GST / HST / QST

Must register for HST when annual taxable revenues exceed $30,000 in a single calendar quarter or over four consecutive quarters. Voluntary registration is allowed before that threshold.

Payroll

Register a payroll account with CRA when you hire your first employee. Deduct and remit CPP, EI, and income tax on a schedule based on your average monthly remittances.

Business Name Search & Reservation

System: Ontario-weighted NUANS (national system, private providers)
Fee: See current fee at provider →

A NUANS name search is required for named Ontario corporations. Numbered companies and business-name registrations do not require NUANS.

Provincial Sales Tax in Ontario

Type: HST — 13%
Separate registration: No — register with CRA

Ontario is an HST province — register once with CRA (no separate provincial registration).

CRA GST/HST registration →

Annual Filing & Renewal in Ontario

Business name renewals every 5 years ($60). Ontario corporation annual return filed in the OBR — no filing fee.

Fee: $0 for corporation annual return; $60 for business name renewal

Official source →

Step-by-Step: Starting Your Ontario Business

  1. 1

    Choose your business structure (sole proprietor, partnership, or corporation).

  2. 2

    Register your business name (if not incorporating) or incorporate (Articles of Incorporation).

  3. 3

    Register for a CRA Business Number at canada.ca/cra-business.

  4. 4

    Register for HST/GST if your revenue exceeds or will exceed $30,000.

  5. 5

    Open a business bank account (keep personal and business finances separate).

  6. 6

    Register for a municipal business licence if required by your municipality.

  7. 7

    If you have employees, register for a payroll account with CRA.

  8. 8

    Set up your bookkeeping system — keep all receipts and records for at least 6 years.

Ontario-specific things to know

  • Ontario requires a NUANS name search before approving a corporation name.
  • Professional corporations (lawyers, accountants, doctors) have additional requirements.
  • Ontario corporations must file an annual return with the Ontario Business Registry each year (no fee).
  • The Ontario Small Business Support Grant and other programs may be available — check ontario.ca/business.

Common Questions

Do I need to incorporate to start a business in Ontario?

No. You can operate as a sole proprietor with just a registered business name. Incorporation makes sense if you need liability protection, plan to grow, or want the tax advantages of the small business deduction.

Do I need to charge GST/HST right away?

You must register for GST/HST once your taxable revenues in any single quarter or over the past four quarters exceed $30,000. You can register voluntarily before that — it lets you claim input tax credits on your business expenses.

What's the difference between a provincial and federal corporation?

A provincial corporation is incorporated under Ontario's laws and gets name protection only in Ontario. A federal corporation is incorporated under the Canada Business Corporations Act and gets national name protection, but must also register in any province where it carries on business. For most small businesses, a provincial corporation is sufficient and simpler.

Do I need a business bank account?

It's not legally required for sole proprietors, but strongly recommended. Mixing personal and business finances makes accounting and tax filing significantly harder, and looks unprofessional to clients. Corporations are legally required to maintain separate accounts.

Official sources

Last updated: June 2026 — fees marked "as of 2026" should be confirmed at the official source before relying on them.

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