top of page

Starting a Business in Toronto: What You Need to Know


Photo of a couple at a café working on their startup business

Are you planning on starting a business in Toronto? In this blog, we will discuss all the things you need to know before getting started.


Choose Your Business Structure

As per business law, before starting a business in Toronto, you need to specify your venture’s structure. This will help determine the applicable taxation, liability, and ownership specifications. Common business structures include sole proprietorships, partnerships, corporations, and Limited Liability Corporations (LLCs).


Register Your Business Name

After choosing a business structure, you need to register your business name. In Toronto, this is done through the Ontario Business Registry. If needed, you can search the registry for free to see if the business name that you have chosen is already taken.


Incorporate Your Business (if Applicable)

If the business structure that you have decided to go with is either a corporation or an LLC, you will also be required to incorporate your business by filing an application with Corporations Canada.


Obtain the Necessary Licences and Permits

Your business may require certain specific licences and permits based on the service you provide, your location, or the industry you operate in. Here are some of the most common licences and permits that businesses typically require:

  • Business licences

  • Professional licences

  • Zoning permits

  • Health and safety permits


Register for a Business Number and CRA Accounts

You will also need to register for specific Canada Revenue Agency (CRA) account for your business. This is important for several crucial aspects of your business, including payroll deductions and your payable GST/HST and income tax. The CRA will also assign you  a business number, which will serve as a unique identifier for your business.


Draft Essential Legal Documents

Some legal documents that you may need to draft include the following:

  • Partnership agreements

  • Shareholder agreements

  • Employment contracts

  • Non-Disclosure Agreements (NDAs)


Understand Your Tax Obligations

As mentioned earlier, you may be required to pay certain taxes. These include income tax, payroll taxes, corporate tax, and GST/HST. Here at Picov & Kleinberg Law, we can provide you with professional tax advice to help you avoid tax debts and ensure your compliance with the law regarding your payable taxes


Compliance with Employment Standards

To run a business in Toronto, you must comply with the Employment Standards Act of Ontario. This act establishes the standards that you need to comply with regarding payable minimum wage, overtime pay, and other related regulations.


Protect Your Intellectual Property

Since your intellectual property represents an asset for your business, you must take appropriate measures to safeguard it appropriately. This can be done through trademarks, copyrights, and patents.


Consult a Legal Professional

If you are thinking of starting a business in Toronto, we also highly recommend consulting with a legal professional for further advice. At Picov & Kleinberg Law, we provide you with personalized advice to help you effectively navigate the complexities of business and corporate law. We will also make sure that your business is compliant with the law and all applicable regulations.


Contact us today to learn more about our legal services for businesses in Toronto.

Comments


bottom of page