Small Business Grants in Ontario 2026: Free Money to Start Your Business



Sole Proprietorship vs. Incorporation in Ontario (2026): What to Choose?

Choosing between a sole proprietorship and incorporation is one of the first legal decisions for entrepreneurs in Ontario. Each option affects liability, taxes, paperwork, and long-term growth.

1) Liability (Risk Protection)

Sole proprietorship: You and the business are the same legal entity, so personal assets may be exposed to business liabilities.

Corporation: The business is generally a separate legal entity, which can reduce personal exposure (with exceptions).

2) Cost and setup

  • Registering a sole proprietorship in Ontario is commonly listed at $60 through the Ontario Business Registry. [web:305]
  • Provincial incorporation fees are commonly shown around $300 (online with the Ontario government). [web:302]

3) Taxes and bookkeeping

Sole proprietorship income is usually reported on your personal return, while corporations file corporate returns and can offer different planning options.

4) Growth and credibility

Incorporation can help when working with larger clients, applying for certain programs, or planning to bring partners/investors.

5) Quick decision guide

  • Choose sole proprietorship if you’re starting small, testing demand, and want minimal admin.
  • Consider incorporation if your risk is higher, you want long-term scaling, or you plan to hire/raise funds.

Disclaimer: This article is for informational purposes only and is not legal or tax advice.

Commentaires

Enregistrer un commentaire

Posts les plus consultés de ce blog

Business License vs. Master Business License in Ontario: What Do You Need?

Image
There is often confusion between a "Master Business License" and a municipal "Business License." If you are operating in Toronto, Ottawa, or Mississauga, you might need both. Here is how to tell the difference. 1. The Master Business License (MBL) This is issued by the Province of Ontario . It is essentially your business registration. It allows you to operate under a specific business name. Every business that is not using the owner's exact legal name must have one. Example: If John Smith runs a painting business called "John's Painting," he needs an MBL. 2. Municipal Business License This is issued by your City or Municipality (e.g., City of Toronto). It is a permit to operate a specific type of business in a specific location . You typically need this if you run: A restaurant or food truck. A salon or barbershop. A driving school. A taxi or ride-sharing service. 3. How to Check Do not assume you are clear just becau...
Lire la suite

How to Register a Small Business in Ontario: The 2026 Guide

Image
Starting a new venture in Ontario is an exciting milestone. Whether you are launching a tech startup in Toronto or a cozy bakery in Ottawa, the first legal step is registering your business. In 2026, the process has become more streamlined, but it still requires careful attention to detail. 1. Choose Your Business Structure Before you register, you must decide on the legal structure of your business. The two most common forms in Ontario are: Sole Proprietorship: The simplest and least expensive option. You and the business are the same legal entity. Incorporation: Creates a separate legal entity. This protects your personal assets but involves more paperwork and higher initial costs. 2. The Name Search (NUANS) You cannot register a business name that is already in use. You must perform a name search through the Ontario Business Registry. If you are incorporating, a NUANS report is mandatory to ensure your chosen name is unique and available. 3. Registering Online ...
Lire la suite

Do I Need a Lawyer to Incorporate in Ontario? (DIY vs. Professional)

Image
Incorporating a business in Ontario is a legal process. Many new business owners wonder: "Can I do this myself, or do I need to pay a lawyer $1,500?" The answer depends on the complexity of your business. Option 1: Do It Yourself (DIY) Cost: Approx. $300 - $360 (Government fees only). Pros: Cheapest option. Fast. Cons: You might make mistakes with share structures. No legal advice. Best for: Single-owner businesses (consultants, freelancers) with no complex partners. Option 2: Online Legal Services (e.g., Ownr, LawDepot) Cost: $500 - $700. Pros: Automates the paperwork. Cheaper than a lawyer but safer than DIY. Cons: Still limited customization. Option 3: Hire a Lawyer Cost: $1,200 - $2,000+. Pros: Full legal protection. customized shareholder agreements. Essential if you have multiple partners or investors. Recommendation If you are the only owner, you can likely incorporate yourself online through the Ontario Business Registry. If you ha...
Lire la suite