Ontario is the easiest place in Canada to start a business, once you understand the order things happen in. Skip a step and you'll be untangling paperwork six months in. Here is exactly how to start a business in Ontario in 2026 — from picking a structure to getting your first HST return in order.
Pick a Business Structure
Ontario recognizes three main structures: sole proprietorship, general partnership, and corporation. Sole proprietorship is the fastest and cheapest, and it's what almost every first-year business should use. You pay personal income tax on profits, and you can upgrade to a corporation later when the tax savings actually justify the cost.
Incorporate only if you have a specific reason — significant liability exposure, investors, or projected profits high enough to benefit from the small business deduction. Otherwise, keep it simple.
Register the Business in Ontario
Business name registration in Ontario happens through ServiceOntario's Ontario Business Registry. A sole proprietorship name registration costs $60 online and lasts five years. Incorporating provincially is $300 online. You'll get a Business Identification Number (BIN) automatically.
Walk through the full steps in our Ontario business registration guide.
Set Up Your CRA Accounts
Once registered, the CRA side looks like this:
- Business Number (BN) — the master ID for all tax accounts
- HST account — mandatory once you hit $30K in gross revenue in 4 rolling quarters
- Payroll account — only if you hire employees
- Import/export account — only if you cross borders with goods
Many new owners register for HST voluntarily from day one so they can claim input tax credits on business purchases. If you're buying equipment or software, that can pay for itself fast.
Check Municipal Licences and Zoning
Provincial registration doesn't cover city-level permits. Toronto, Ottawa, Hamilton and Mississauga each have their own business licence system. Food businesses, home services, and anything client-facing often needs one. See our Toronto business licence guide if you're in the GTA.
Open the Accounts That Keep You Sane
Open a business chequing account the same week you register. Run every business dollar through it. Pair it with simple accounting software (Wave is free, QuickBooks is worth it once you have volume) and a lightweight CRM like Threecus so leads and invoices don't fall through the cracks.
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