Starting a Business

https://sbs-spe.feddevontario.canada.ca/starting-business
Table of contents
Before you start: The plan
 What is a business plan?
 Securing financing
 Choosing a business structure
 Choosing a business name
 Choosing a location
Getting started: The essentials
 How to register your business name
 Incorporating your business
 Regulations, licences and permits
 Business number registration
 Taxation
 Hiring employees
Other resources
 Associations
 Business organizations
Before you start: The plan
What is a business plan?
A business plan is a written document that describes your business objectives and strategies, your financial forecasts and the market you are
targeting. It will help you set realistic and timely goals, secure external funding, measure your success, clarify operational requirements and
establish reasonable financial forecasts. Preparing your plan will help you focus on how to operate your new business and give it the best
chance for success.
Securing financial assistance to start your new business is directly related to the strength of your business plan. To be considered for funding
from financial institutions or investors, you must demonstrate that you understand every aspect of your business, and its ability to generate
profit.
A business plan is more than just a document that you present to lenders and investors; it also helps you plan for the growth and progress of
your business. Proper planning can help your business succeed.
Read online:
Business Plan Guide
Securing financing
Grants, contributions, subsidies and loan guarantees are available from various government sources. Use Innovation Canada’s online search
tool to look for programs and services that may apply to your business.
Search online:
Grow your business
Choosing a business structure
When starting your business, choose the business structure that best suits your needs. The three most common business structures are:
 Sole proprietorship
 General partnership
 Incorporation
To learn more about different forms of business organization, read the following documents:
Business structures: Which one is right for you?
Choosing a business name
Before registering your business, you should decide what you want your business name to be. The right name can be an effective advertising
tool that can help your customers understand what your business does and which market you are targeting.
Some points to consider when naming your business:
 Short names are easier to remember
 Descriptive names can help people understand what your company sells
 Professional names can fit the image you want to project
 Unique names ensure that the name is not already in use
Your business name is an important part of your business identity. Choose a name that will fit your needs and suit your business image.
Read online:
Choosing a name…
Choosing a location
For most businesses, choosing an appropriate location is critical, and the address is often needed for registrations, licences and permits. Your
ideal location will depend on your business needs, zoning restrictions and where your customers and competitors are. Taxes, noise and the
local business environment are also important factors to consider when reviewing your options.
If you are considering setting up your business in your home, make sure you know what regulations and restrictions will apply to your home-
based business before you start.
Read online:
Choosing and setting up a location
Getting started: The essentials
How to register your business name
Business name registration applies to entrepreneurs who want to register a sole proprietorship, a partnership or an operating name (trade
name) for a corporation. The name of a new business must be registered if it is different than the business owner’s legal name. For information
on how to set up a corporation, see the Incorporating your business section below.
You can complete an optional name search and register your business in the following ways:
 Through ServiceOntario's website
 In person at a ServiceOntario centre
 By mailing an application to the address indicated on the form
The cost to register your business ranges from $60 to $80. Your registration is valid for five years, at which time it must be renewed.
Use online:
Business name search, registration, and renewal
Incorporating your business
A corporation is a legal entity that separates the business from its owner/operator. You can choose to incorporate federally or provincially.
Each option comes with its own advantages and disadvantages.
Provincial incorporation
Incorporating your business provincially allows you to do business under a corporate name in Ontario. Corporate name protection applies in
Ontario, and you can open offices/stores within the province.
Contact the Companies and Personal Property Security Branch:
1-800-361-3223
Ontario business incorporation
Federal incorporation
If you incorporate your business federally, you can open locations within Ontario and/or in other provinces and territories across Canada. If you
open offices/stores in different provinces, you will be required to register your business in those locations. Federal incorporation also provides
corporate name protection across the country.
Contact Corporations Canada:
1-866-333-5556
Steps to incorporating
Professional corporations
If you are a regulated professional (e.g. healthcare professionals, social workers, accountants) you may be able to provincially incorporate your
practice as a professional corporation.

Some key features of professional corporations are:

 Limited liability protection
 Access to external investment funding
 Advantages of corporate tax rules
 Corporate status
Regulated professions can contact the relevant regulatory body and the Ontario Ministry of Government and Consumer Services:
1-800-361-3223
Professional corporations
Personal Real Estate Corporations (PREC)
If your are a broker or salesperson registered in Ontario to deal in real estate you may wish to explore the option offered by a Personal Real
Estate Corporation (PREC) (not a professional corporation). 
Contact the Real Estate Council of Ontario (RECO):
1-800-245-6910
Personal Real Estate Corporations (PREC) and Advertising Terms
Regulations, licences and permits
Your business may need licences and permits from the federal, provincial and municipal levels of government.
In addition to the information you will find in this guide, you can use BizPaL to find licences and regulations that may affect your business. You
can also contact us to speak to someone about starting your business.
Contact us:
1-888-576-4444
Permits and licences search
Legal questions
You can contact Pro Bono Ontario’s free legal advice hotline to enquire about getting help with your everyday civil legal needs (no family law or
criminal law). The service is generally aimed at those who cannot afford a lawyer.
Note that service is not guaranteed and you will be asked questions as part of the qualifying process, such as the amount of personal income
earned by your household, your name, postal code and age range.
Contact Pro Bono Ontario’s Free Legal Advice Hotline:
1-855-255-7256
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You can also contact the Law Society of Ontario's Law Society Referral Service if you have legal questions of a business nature. The service may
be able to assist you in finding a lawyer or paralegal, based on your needs.
Use online:
Law Society Referral Service
Business number registration
Your Business Number is your single account number for dealing with the federal government regarding taxes, payroll, import/export and other
activities. If you plan to hire employees, or if you will be importing and/or exporting products or services, you will need to get a business
number.
If you sell goods and services in Ontario, you may need a business number to charge and remit the Harmonized Sales Tax (HST). Speak with the
Canada Revenue Agency (CRA) for more information.
Contact CRA:
1-800-959-5525
Canada Revenue Agency – Business
Business Number (BN) Registration
Taxation
Depending on your location and the type of products or services being offered, federal, provincial and/or municipal business taxes may also
apply.
Read online:
Taxation guide
E-Business and selling to customers outside of Ontario
Hiring employees
It is important that you know your obligations and opportunities when it comes to hiring employees, and familiarize yourself with current
labour market conditions.
Some of the things you will want to consider when hiring staff are:
 Recruitment practices
 Payroll
 Tax returns
 Employment standards
Read online:
Employment regulations guide: Hiring
Other resources
Associations
If you are interested in finding an association, use our secondary market research service request and have us search for one based on your
needs.
Business organizations
Small Business Enterprise Centres
Visit a Small Business Enterprise Centre to speak with knowledgeable general business consultants, attend seminars and access business
publications.
Search online:
Small Business Enterprise Centres
Community Futures Ontario
Access information and financing for businesses in Northern Ontario and rural areas of Southern and Eastern Ontario.
Contact a CFDC:
1-866-668-2332 
Community Futures Ontario
Ministry of Economic Development, Job Creation and Trade
Find information about Ontario's small business community, and connect to the people and resources you need to improve competitiveness
and profitability.
Contact the Ministry of Economic Development, Job Creation and Trade:
1-800-268-7095
Ministry of Economic Development, Job Creation and Trade
Business Development Bank of Canada (BDC)
Access a wide range of business counselling and training programs, including workshops, seminars and business management courses. Program
costs will vary.
Contact BDC:
1-877-232-2269
Business Development Bank of Canada
The Canadian Trade Commissioner Service (TCS)
Learn how global value chains can improve competitiveness, profitability and long-term sustainability for your business.
Contact TCS:
1-888-306-9991
Canadian Trade Commissioner Service
 
You can also find books, magazines and other relevant print material at business service organizations in your community. For more
information or to locate a local business centre, contact us at 1-888-576-4444.