Starting a business in Ontario costs between $60 and $3,000 in the first year. A sole proprietorship is $60, an Ontario corporation is $300, and the rest is insurance, licensing, and banking. Here is the exact breakdown in 2026.
How much does registration cost?
- Sole proprietorship (5-year term): $60
- General partnership (5-year term): $60
- Ontario corporation: $300 (online) + Articles of Incorporation
- Federal corporation: $200 + extra-provincial Ontario registration (~$330)
- NUANS name search (for corporations): $13-$26
- CRA Business Number: free
How much is business insurance in Ontario?
Basic commercial general liability for a small business runs $500 to $1,500 per year. Professional liability (E&O) for consultants and service providers adds another $400 to $1,200. Trades and high-risk industries pay more. A home business endorsement on your existing home policy can start as low as $100/year if your risk is very low.
Do I have to pay for a licence?
Only if your municipality or industry requires one. Most generic consulting, design, and online businesses don't need a municipal licence. Regulated industries (food, personal services, contractors, short-term rentals) do. Toronto licence fees range from $55 to $600. See our Toronto business licence guide.
What are the ongoing costs?
- Annual return (corporations): $12-$30
- Bookkeeping software: $0 (Wave) to $360/year (QuickBooks)
- CRM for client management: $0-$600/year — Threecus offers a free tier
- HST remittance: neutral if you charge it, but adds admin time
- Accountant for corporate tax return: $800-$2,500/year
What should I actually budget?
For a sole proprietorship with basic insurance and no municipal licence, budget $700 to $1,500 for year one. For a corporation with insurance and an accountant, budget $2,500 to $4,000. Anything above that is usually inventory, equipment, or a physical space.
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