What do I need to start a small business in Ontario?

Before starting a small business in Ontario, you should determine your business structure, choose a name, register your business, understand tax requirements, and ensure you have any necessary permits or licenses.

Do I need a business plan before registering in Ontario?

Yes. A business plan helps clarify your services, target market, pricing, financial projections, and growth strategy, making your registration process and operations smoother.

Should I register a business name before opening my Ontario business?

Yes. Sole proprietorships and partnerships using a name other than the owner’s legal name must register it with the Ontario government, while corporations must register their corporate name.

How do I choose the right business structure in Ontario?

Common structures include sole proprietorship, partnership, and corporation. Consider liability, taxation, and growth potential when choosing the right structure for your business.

Do I need a HST number before starting a business in Ontario?

You only need to register for a HST number if your business expects to earn over $30,000 annually. Otherwise, you can register later once you reach the threshold.

What permits or licenses do I need before starting a small business in Ontario?

Licenses depend on your industry and municipality. Common permits include zoning approvals, health and safety licenses, and industry-specific registrations.

Do I need a business bank account before registration?

It’s recommended to open a separate business bank account after registering to keep finances organized and simplify bookkeeping and tax reporting.

Should I get business insurance before registering in Ontario?

Yes. Insurance such as liability, property, or professional coverage protects your business and is often required by clients or lenders.

Do I need to check for trademark conflicts before registering my business name?

Yes. Performing a NUANS or Ontario Name Search helps ensure your business name is unique and does not infringe on existing trademarks or registered names.

How much does it cost to register a small business in Ontario?

Costs vary depending on business type. Sole proprietorships and partnerships usually have a small registration fee, while incorporating a business costs more and includes additional legal steps.

Can I start my business before registering in Ontario?

Technically yes for sole proprietorships using your legal name, but operating without registration can limit your legal protections and access to funding or business accounts.

What records should I prepare before registering my business?

Prepare personal identification, business name options, shareholder or partner information, and any relevant documents for licenses or permits required by your industry.

How do I know if my business idea is viable before registering?

Conduct market research, validate demand, assess competitors, and analyze potential revenue and costs to ensure your business idea is financially and operationally viable.

What is the easiest way for Ontario entrepreneurs to prepare before registering a business?

Using a guided service like Launch a Business can help you handle name searches, registration, licensing, HST setup, and compliance checks efficiently, reducing stress and errors.

Small Business in Ontario: What You Really Need Before You Register

Natalie Paquette
15 hours ago
3 min read

Thinking about starting a small business in Ontario? Amazing. Whether you’re launching a side gig, finally turning a skill into income, or going all-in on a big idea, registering your business is a major moment.

But here’s the truth many people don’t find out until they’re already halfway through a form: there are a few things you should probably figure out before you register anything.

At Launch a Business, we help entrepreneurs get set up fast and frustration-free—so here’s your friendly checklist of what you actually need in place before you hit that “submit” button.

Launch Your Business!

1. Decide if You Need a Business Name or Not

Not every business in Ontario needs a custom name—surprising, right?

If you’re registering as a sole proprietorship and you’re okay operating under just your personal legal name, you can skip the naming step entirely.

If you do want a business name, make sure it’s:

Unique enough to stand out
Not too close to existing businesses (a quick name search can help confirm this!)
Easy to spell, say, and search

You can do a quick online scan first, or if you want the official route (recommended if you’re planning to grow or invest in branding), you can order an Ontario name search or NUANS report.

2. Pick the Right Business Structure (This Matters More Than You Think)

Your structure determines your taxes, your paperwork, and your liability. Here’s the quick breakdown:

Sole Proprietorship

Perfect for freelancers, trades, creators, and side hustles.

Easiest and quickest to start
Taxes are combined with your personal return
You’re personally liable if anything goes wrong

Incorporation (Ontario, Federal or another province)

Great if you’re building something long-term, want liability protection, or need to appear more “official.”

Offers limited liability
May reduce taxes as you grow
More ongoing compliance than a sole prop

Partnership

Useful when two or more people are building something together.

Easy to register
Shared responsibility
Make sure you have a partnership agreement—seriously

If you already know where your business is heading, your structure will be an easy decision.

3. Figure Out Your Business Address

Every registration in Ontario needs a business address.

A few quick points:

It can be your home address (yes, even if you work from the couch).
It must be a physical address, no P.O. boxes allowed.
If you’re incorporating in Ontario, the business address has to be in Ontario.

This address becomes part of your public record, so choose the one you’re comfortable with.

4. Know Who’s Involved (If You’re Incorporating)

Incorporations—whether Ontario or federal—require some extra details:

Directors’ names and addresses
The percentage of voting shares
Who will own what

You don’t need a business plan or financials (although both are really good ideas to get together!)—you just need to know who’s at the table and how you want things split.

5. Think Ahead About Taxes (Even If You’re Not Making Money Yet)

Registering the business doesn’t automatically give you the tax accounts you might need.

Here’s what to consider:

HST number if you expect to earn $30,000+ in a year (or want to claim HST credits)
Payroll account if you’ll be hiring
Import/export account if you deal with goods from outside Canada

You don’t need every account on day one—but planning ahead keeps you from scrambling later.

6. Understand What Renewals and Reporting Look Like

Before you register, know your future responsibilities:

Sole proprietorship and partnership names in Ontario must be renewed every 5 years
Ontario and federal corporations must file annual returns
Any business address or director changes need to be updated

These aren’t difficult—just easier when you know they’re coming.

7. Have a Clear Idea of What You’re Selling

It doesn’t need to be a 30-page business plan, but you should have a bit of a business plan and know things like:

What you’re offering
Who your customers are
How you’re planning to get paid

You’ll also need to list your business activity (called your “NAICS” or business description). Keep it broad—you want space to grow.

8. Don’t Stress: You Don’t Need Everything Perfect

Here’s the good news:You don’t need a website, logo, business bank account, accountant, or even a perfect plan to register.

Those things come later (and we can help recommend some tools and checklists when you’re ready).

Just focus on the essentials:

✔ Name (if you want one)

✔ Structure

✔ Address

✔ People involved

✔ Tax needs

✔ Basic idea of what you’ll be doing

Everything else is optional when you’re starting out.

Ready to Register Your Ontario Business?

If you’ve checked off the list above, you’re ready.

Launch Your Business!

Launch a Business makes the process quick, simple, and human—no jargon, no headaches, no guessing.

Whether you’re starting a sole proprietorship, partnership, or incorporation, we’ll handle the filings and walk you through every step so you can focus on actually launching.

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