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Choosing a business structure affects liability, tax, governance, financing and filing obligations. Common structures include a sole proprietorship, partnership and corporation, but the appropriate structure depends on the ownership, risk profile and plans of the business.

A corporation is a separate legal entity and can provide limited liability to shareholders, but incorporation does not eliminate every potential personal liability. Tax, financing and regulatory considerations may also affect the choice of structure.

Registration and Licensing

Registration requirements depend on the legal structure and the name used to carry on business. For example, an individual operating a sole proprietorship under a name other than the individual's own legal name generally must register that business name. Ontario business-name registrations are filed through the Ontario Business Registry and generally expire after five years unless renewed.

Key Compliance Areas

  • Business Name Registration: Registering a business name through the Ontario Business Registry creates a provincial registration record and Business Identification Number. A business-name registration does not by itself provide trademark protection or exclusive rights to the name.
  • GST/HST Registration: A business is generally a small supplier while its worldwide taxable supplies, together with those of its associates, do not exceed the applicable $30,000 threshold. If the threshold is exceeded, the effective registration date depends on how and when it is exceeded. Eligible small suppliers may register voluntarily.
  • WSIB Registration: Most Ontario businesses that are required to register must do so within 10 calendar days after hiring their first employee. Construction has broader compulsory-coverage rules that can also apply to certain independent operators, sole proprietors, partners and executive officers, subject to applicable exceptions.

Depending on your industry and location, you may also need specific municipal, provincial or federal licences and permits, and requirements differ between sectors. Registration rules and thresholds change over time, so the position should be confirmed at the time you file.

This article provides general legal information only and is not legal advice. Legal outcomes depend on the facts and applicable law. Last reviewed September 6, 2026.