Starting a Business in Ontario: Your Step-by-Step Guide to Success
- Lisa Shaw
- May 1
- 4 min read
Updated: Sep 27
So, you've got a great business idea, and you're ready to take the plunge. Maybe it's a cozy bakery, a tech startup, or a home-based daycare. Whatever your dream is, starting a business in Ontario is an exciting journey — and you're not alone. Ontario is one of the best places in Canada to launch a venture, offering a strong economy, access to talent, and support for entrepreneurs.
But where do you start?
Let's break it down step-by-step so you can go from idea to launch with confidence.
1. Define Your Business Idea
Every great business begins with a solid idea. Ask yourself:
What problem does my business solve?
Who is my target customer?
What makes my product or service different?
Do some basic market research. Check out your competition and talk to potential customers. The more you understand your niche, the better your chances of standing out.
2. Starting a Business in Ontario: Choosing a Business Structure
In Ontario, you've got a few options:
Sole Proprietorship – Easiest and cheapest to set up. You're the sole owner and are personally liable.
Partnership – Similar to sole proprietorship but shared with one or more partners.
Corporation – More complex, but it gives you limited liability and potential tax benefits.
Most small businesses start as sole proprietorships or corporations. If you're unsure, speak with an accountant or legal advisor to find the best fit.
3. Register Your Business in Ontario
Unless you're operating under your own legal name (e.g., Brad Pitt), you'll need to register your business name with Service Ontario.
Here's how:
Launch A Business here in just a few minutes!
Registration fees vary depending on the structure you choose. The government fees for Sole Proprietorships and Partnerships are $60 and $300 for a corporation.
You'll receive a Business Identification Number (BIN) once registered.
4. Get Your Licenses and Permits
Depending on your industry and what services you offer, you may need:
Municipal business licenses (check with your city or town).
Health and safety permits (especially for food or personal care businesses)
Special industry licenses
The BizPal tool is a great resource for figuring out exactly what you need for your type of business and location.
5. Set Up a Business Bank Account
Keep your personal and business finances separate. Most banks in Ontario offer small business accounts with tools to help you manage cash flow, invoices, and payments.
To open one, you'll usually need:
Your Business Registration Number (BIN)
Business Registration / Articles of Incorporation
Two pieces of ID
It's a good idea to schedule an appointment with a bank rep who specializes in helping businesses and ask exactly what they'll need so you come prepared.
6. Understand Your Tax Obligations
As a business owner, you'll need to understand:
HST: If you earn over $30,000 annually, you must register for an HST number.
Payroll deductions: If you hire staff, you'll need to remit income tax, CPP, and EI.
Corporate income tax: If you incorporate, file annually with the CRA and the province.
Check out the Canada Revenue Agency (CRA) site for detailed guides and to get these accounts all set up.
7. Explore Funding and Support
Starting a business can be expensive — but there's help! In Ontario, you can tap into:
Grants and loans from provincial and federal programs
Startup incubators and small business centers
Futurpreneur Canada – for entrepreneurs under 40
BDC (Business Development Bank of Canada) – for financing and advice
Your local Small Business Enterprise Centre (SBEC) is a fantastic free resource for mentoring, workshops, and guidance.
8. Market Your Business
You don't need a huge budget to start marketing. Consider:
A clean, simple website with your services and contact info
Social media accounts (start with 1–2 platforms your audience uses)
Google Business Profile to appear in local searches
Don't forget word-of-mouth. Ontario communities love supporting local — let them know you exist!
9. Create a Business Plan
Think of your business plan as your roadmap — it helps you figure out where you’re headed, how you’ll get there, and what you’ll do if you hit a detour. It doesn’t have to be a 50-page document full of corporate jargon; it just needs to clearly explain your goals, your target market, how you’ll make money, and what resources you’ll need along the way.
A good business plan isn’t just for the bank or investors — it’s for you. It keeps you focused, makes decision-making easier, and helps you spot potential challenges before they pop up.
Want a head start? We’ve put together a Free Business Plan Template to guide you through each section, step-by-step, so you can spend less time staring at a blank page and more time building your dream.
Final Thoughts: Start Small, Think Big
Starting a business in Ontario is a bold and rewarding move. You might hit a few bumps along the way, but that's part of the journey. The key is to start small, stay consistent, and don't be afraid to ask for help.
You've got this.
Need help navigating your Ontario business journey? Book us for a free consult! Let us know what stage you're at — We're here to help answer your questions and provide tools and guidance.
