Launching a Freelance or Consulting Business in Ontario: A Step-by-Step Guide
- Lisa Shaw
- Nov 19
- 4 min read
Ready to turn your skills into a business? — that’s awesome! Whether you’re a designer, developer, marketer, consultant, or expert in your field, freelancing or consulting can be one of the most flexible and rewarding ways to work for yourself.
In Ontario, launching your freelance or consulting business doesn’t have to be complicated. You just need a clear plan, the right setup, and a few smart decisions early on to start off strong.
Let’s walk through it step by step.
Step 1: Define What You’re Offering
Start by getting clear on what you actually do — and for who.
Are you offering one-on-one consulting? Project-based services? Monthly retainers? The more specific you can get, the easier it’ll be to market yourself and price your services.
Ask yourself:
What problems do I solve for clients?
Who benefits most from what I offer?
What’s my niche or specialty?
Pro tip: Freelancers and consultants who define their niche early tend to attract better clients faster. “Everyone” isn’t your target market — but “small business owners looking for social media help” or “startups needing HR guidance” might be.
Step 2: Choose Your Business Structure
In Ontario, you have a few options for legally setting up your business:
1. Sole Proprietorship
This is the simplest and fastest option. You operate under your own name (or a registered business name), and all income is claimed personally. It’s great for new freelancers and solo consultants just getting started.
2. Incorporation
If you’re planning to grow, want liability protection, or want to build a more formal brand, incorporation can be a smart move. It separates you legally and financially from your business.
Not sure which is right for you? Many freelancers start as sole proprietors and incorporate later once their income and client base grow. You can learn more about the pros and cons of each of these options here!
Step 3: Register Your Business Name (if needed)
If you’re using a business name other than your own (for example, “BrightEdge Consulting” instead of “Taylor Lee”), you’ll need to register your business name with the Ontario government.
The process is quick, affordable, and helps you operate professionally under your chosen name. Plus, it makes it easier to open a business bank account and get paid under your business brand.
If you’re not sure how to start, Launch a Business can help you register your name in just minutes — all online and stress-free.
Step 4: Set Up Your Finances
Separate your business and personal finances from day one. It makes bookkeeping and tax time a lot easier.
You’ll want to:
Open a business bank account LINK TO BLOG ABOUT FINANCES
Set aside money for taxes and HST (once you hit $30,000 in annual income, you’ll need to register for an HST number)
Use accounting tools or apps to track your income and expenses LINK TO BLOG ABOUT BIZ TOOLS
Keeping your financials organized helps you understand your profits, manage cash flow, and look professional with clients.
Step 5: Protect Yourself with Contracts
Even if you’re just starting out, always use a written agreement. A simple service contract sets expectations, outlines payment terms, and protects both you and your client.
Include things like:
Scope of work
Payment schedule
Revisions or changes
Cancellation terms
Pro tip: You don’t need an expensive lawyer-drafted document — just a clear, fair contract that both parties agree to before you start work.
Step 6: Build Your Online Presence
A polished online presence helps clients trust you and find you. You don’t need a massive website to start — even a one-page portfolio or LinkedIn profile that clearly explains what you do can go a long way.
Here’s what to focus on:
A professional email address (ideally with your business domain)
A simple website or portfolio
Social profiles that reflect your services and personality
Client testimonials or samples of past work
Your online presence should make it easy for someone to learn about what you do, how to contact you and to say, “Yes — this is exactly who I need!”
Step 7: Start Finding Clients
Your first few clients will likely come from your network — friends, colleagues, or referrals.
From there, you can expand by:
Joining online communities related to your niche
Sharing your expertise on LinkedIn or social media
Reaching out directly to businesses you’d like to work with
Be consistent, communicate well, and deliver great results — word of mouth will do the rest.
Step 8: Keep Things Legit
Running your freelance or consulting business in Ontario means keeping up with a few key details:
Renew your business registration every 5 years (if you registered a sole proprietorship)
File your taxes on time
Keep your records organized
Once you’re up and running, you’ll find that maintaining your business is pretty simple with the right setup.
Ready to Launch?
At Launch a Business, we make it easy to start your freelance or consulting business in Ontario — whether that means registering a business name, incorporating, or getting advice on what’s best for your situation.
✅ Fast online setup
✅ Clear, friendly support
✅ Guidance from people who’ve been helping entrepreneurs for over a decade
Your business idea deserves a strong start — and we’re here to help make that happen.
Start your business today with Launch a Business Inc.
Still have questions? No problem! Set up a free 15 minute consult, so we can help answer your questions before you get started!
