Only if your business is one of the types the City licenses under Toronto Municipal Code Chapter 545, which includes eating establishments, take-out food businesses, nightclubs, payday lenders, pawnbrokers, tow trucks, driving schools, holistic centres and multi-tenant houses. Most consulting, professional, office-based and online businesses don't need a City licence, but they still need provincial registration, CRA tax accounts and compliance with Toronto zoning.

Business names are registered with the Province, not the City. A sole proprietor or partnership using a name other than the owner's legal name registers it in the Ontario Business Registry for a $60 government fee, and the registration must be renewed every five years. A corporation's name is set in its Articles of Incorporation, and it registers any other operating name it uses in the same registry.

An Ontario corporation costs $300 in government fees and is enough for a business that operates mainly in Ontario. Federal incorporation gives Canada-wide name protection, but the corporation must still file an Ontario Initial Return and keep its annual returns and ownership register up to date with Corporations Canada. Both pay the same corporate tax rates; on income eligible for the small business deduction, the combined federal and Ontario rate is 12.2%. We review your growth plans and recommend one.

Each year it files an Ontario Annual Return in the Ontario Business Registry within six months after fiscal year-end. It also files a Notice of Change within 15 days of any change in directors, officers or registered office, and keeps an up-to-date register of individuals with significant control. Depending on its activities, it may also file HST returns, payroll remittances and T4/T5 slips, the Employer Health Tax return, WSIB reports and, for contractors, T5018 slips.

You must register once taxable sales exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters. Toronto sales are charged the 13% Ontario HST. Registering voluntarily before you reach the threshold lets you recover HST paid on start-up costs, which often makes sense for new Toronto businesses that sell to other businesses.

Employer Health Tax applies only to Ontario payroll above the $1 million annual exemption, and associated corporations share that exemption. Employers whose group payroll exceeds $5 million get no exemption. WSIB coverage is mandatory for most industries: register within 10 days of hiring your first worker. Construction has its own mandatory coverage rules for independent operators.

Toronto residential owners must file an annual Vacant Home Tax declaration, and a home vacant for more than six months is taxed at 3% of its assessed value. Short-term rental operators must register with the City, may only rent their principal residence, and collect the Municipal Accommodation Tax, which has been 6% since August 1, 2026. Property buyers also pay Toronto's Municipal Land Transfer Tax in addition to Ontario's.

Yes. Toronto's zoning by-law generally allows a home occupation in a dwelling, subject to limits on things like signs, customer visits and certain uses. If you have a home office, you may be able to deduct part of your home's costs. The rules differ for a sole proprietor and for a corporation that rents space from its owner, and we set this up so the deduction holds up if the CRA reviews it.

Yes. Our Toronto office is at 55 Queen St E, Suite 1205, near Queen subway station, and most clients work with us entirely online through secure document upload and video calls. We are available seven days a week, with evening support, which suits owners who are busy running their business during the day.