Starting a 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

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 Government of Canada’s online search tool to look for programs and services that may apply to your business.

Search online:
Business Benefits Finder

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:
Business structure: 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 business 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:
How to choose the right location for your business

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
• By mailing an application to the address indicated on the form

The cost to register a business is $60. Your registration is valid for five years, at which time it must be renewed.

Use online:
Register your business online

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.

Regulations, licences and permits

Your business may need licences and permits from the federal, provincial and municipal levels of government. You can use BizPaL to find the licences and regulations that may affect your business.

Permits and licences search

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
Business taxes
Business number

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: Hiring

Other resources

Small Business Enterprise Centres