Sole proprietorship
One owner. Direct responsibility.
A simple way to operate, but the owner and business are not separate legal persons. Business obligations can affect your personal assets. Consider the risk of the work you plan to do.
Zubic Law · Ontario Edition · 2026
Starting a Business
in Ontario Guide
Turn an idea into a business with a plan. Work through the legal decisions, test your numbers, and build your launch checklist — one practical step at a time.
What This Guide Is
A practical roadmap from the first business idea to opening day, with calculators that make your assumptions visible.
Who It’s For
Ontario founders, sole proprietors and partners getting ready to launch — or put an existing business on a stronger footing.
How to Use It
Explore your options, run the numbers, then check off each stage. Save or print the checklist for conversations with your lawyer and accountant.
Before the next step
Choose the foundation before you build.
Partnership
Agree on the difficult things early.
If you are starting with someone else, document contributions, decision-making, profit sharing and what happens if a partner leaves. Different partnership structures carry different obligations.
Corporation
A separate legal entity, with ongoing work.
Incorporation adds records, filings and governance responsibilities. It does not remove every personal risk: guarantees and certain director liabilities can still matter. Review the legal and tax fit before choosing.
Registration, permits & tax
These are separate questions.
Registering a business name does not replace permits, tax accounts or a trademark review. Check requirements for your activity and municipality. A sole proprietor using only their own legal name may not need a business-name registration.
Build a budget you can explain.
Separate startup and monthly costs
Equipment, deposits and setup costs happen before opening. Rent, software, payroll and insurance keep coming after.
Plan for cash arriving late
An invoice is not money in the bank. Use expected cash receipts, not just sales booked, when estimating runway.
Keep a buffer
Budget for professional advice, unexpected costs and your own living expenses. Keep money collected for tax separate from spending money.
The calculator
How much do you need to get started?
Estimate your launch funding and cash runway. Use cash you expect to receive and spend each month, not accounting profit.
Funding needed for your target runway
—
Funding gap / surplus—
Monthly net cash burn—
Runway after startup costs—
Planning estimate in Canadian dollars. Funding target = startup costs + positive monthly cash burn × target months. Constant monthly receipts and spending are assumed. Include owner pay, debt payments and tax reserves in your spending where relevant; tax and financing costs are not calculated automatically.
The calculator
What does break-even look like?
Find the sales volume needed to cover monthly operating costs. Use one product, service or a realistic average sale.
Sales needed per month
—
Whole units / jobs needed—
Contribution per unit / job—
Contribution margin—
Operating break-even only. Units are rounded up, and sales shown equal rounded units × selling price. Excludes sales tax, income tax and startup-cost recovery. Add desired owner compensation to fixed costs if it is not already included.
From idea to opening day
Put the legal foundations in place.
Your structure is the starting point. The name you use, the agreements you sign and the way you operate all need attention before launch.
Check the name and registrations
Confirm the business-name or incorporation requirements for your chosen structure. Search for potential conflicts before investing in branding. A business-name registration, domain name and trademark are different things; registration alone does not settle trademark rights.
Confirm permits and premises
Check municipal, provincial and federal requirements for your activity and location. Review zoning and permitted use before committing to space. Ask which licences, inspections or approvals must be in place before opening, and record their renewal dates.
Document the business relationships
Put co-owner contributions, roles, voting and exit arrangements in writing. Review supplier, customer and employment agreements for scope, payment, confidentiality, termination and dispute terms. Understand lease obligations and personal guarantees before signing.
Identify intellectual property
List the brand, designs, software, content and other work the business relies on. Confirm who owns work created by founders, employees or contractors, and document licences or assignments where needed. Ask an appropriate adviser which protection and searches suit the assets.
Beyond registration
Build compliance into everyday operations.
Banking and records
Organize business banking, bookkeeping and records of owner funding. Confirm applicable CRA accounts with your accountant. Keeping finances organized supports reporting; a separate bank account alone does not create a separate legal entity.
People and customers
Review the employment, consumer protection and privacy obligations that apply to your activities. Make sure your contracts and day-to-day practices reflect those requirements, including how you collect and handle customer information.
Insurance and follow-up
Discuss coverage with an insurance professional and maintain a calendar of filings, renewals and contract notice dates. Revisit requirements when you hire, move, add services or change ownership.
Choosing whether to incorporate? Read when incorporation may make sense for your business for the milestones to review with your lawyer and accountant.
Zubic Law’s business formation and contract services can help with the legal decisions behind your launch. For ongoing support, see our article on corporate legal services for Ontario businesses.
The checklist · Starting a Business in Ontario
Four stages. One clear path.
Work through each stage at your own pace. Your progress is saved on this browser, and the meter shows how far you have come.
Checklist progress stays on this device. Calculator entries are not saved.
01Validate & budget
02Choose & register
03Put the legal pieces in place
04Launch & maintain
Take the checklist with you.
Print all four stages or save a PDF to keep with your planning documents.
Choose “Save as PDF” in your print window to keep a digital copy.
A few common questions
Clear answers before you commit.
Do I have to incorporate?
No single structure is right for every business. Your risk, ownership plans and financing needs matter. Get advice on the legal and tax consequences before committing to a structure.
When should I think about GST/HST?
Before launch. For many businesses, the small-supplier threshold is $30,000 in worldwide taxable supplies, including associates, tested over a single calendar quarter or four consecutive calendar quarters. Timing rules and exceptions apply; CRA explains when registration becomes required.
When should I speak to a lawyer?
Before signing a lease, sharing ownership or accepting important contract obligations. Early review gives you room to change terms while you can still negotiate.
Official resources · reviewed October 2026. Check current rules and your own circumstances before acting.
Ontario: start a business ↗Ontario: choose an ownership structure ↗CRA: when to register and charge GST/HST ↗Your next step
Ready to put your business on a solid legal footing?
Bring your plan, your questions and any documents you are being asked to sign. Zubic Law can help you understand the legal decisions behind your next step.