Toronto is one of the best cities in the world to start a business. Canada’s largest metropolitan economy offers a diverse consumer base, a globally connected financial ecosystem, world-class universities producing top talent, and a government apparatus that is genuinely supportive of entrepreneurship. If you’ve been thinking about launching in Toronto, here’s a step-by-step guide to doing it right.
Step 1: Choose Your Business Structure
Most Toronto entrepreneurs incorporate either a federal corporation (under the Canada Business Corporations Act) or an Ontario corporation (under the Business Corporations Act, Ontario). Both structures provide limited liability, but they differ in jurisdiction, name protection, and compliance requirements. Sole proprietorships are simpler but offer no liability protection. Partnerships work for multi-founder businesses without corporate complexity at the start.
For most growth-oriented businesses, an Ontario corporation is the right starting point. Incorporation can be done online through the Ontario Business Registry for approximately $300. You’ll need a business name, a registered address in Ontario, and at least one director who is a Canadian resident.
Step 2: Register Your Business and Get Your CRA Business Number
Once incorporated, register for a CRA business number through the Canada Revenue Agency’s Business Registration Online service. This number is your federal tax identifier and is required for payroll, HST, and import/export accounts. If your annual revenue will exceed $30,000, register for an HST (Harmonized Sales Tax) account immediately; billing without collecting HST when required creates legal liability.
Register your business name with the Ontario Business Registry if you’re operating under a name different from your corporation’s legal name. A NUANS search (Newly Upgraded Automated Name Search) confirms your chosen name isn’t already in use.
Step 3: Open a Business Bank Account
Never mix personal and business finances. Open a dedicated business chequing account as soon as your corporation is registered. Most Toronto banks require your certificate of incorporation, articles of incorporation, and a valid government ID. TD, RBC, and Scotiabank are all strong choices; credit unions like Meridian offer lower fees for early-stage companies. Read our full breakdown in our guide to banks and credit unions in Toronto.
Step 4: Secure Funding
Toronto’s funding landscape is exceptionally strong. For early-stage companies, explore: Futurpreneur Canada (up to $20,000 for founders under 40); BDC small business loans; the Canada Digital Adoption Program (up to $15,000 in grants plus a $100,000 BDC loan); and the SR&ED tax credit for tech and innovation-oriented businesses. Angel investors, seed funds, and accelerators like DMZ at TMU and MaRS Venture Services can provide both capital and strategic support. See our full guide on small business funding in Toronto.
Step 5: Find Your Space
Your first space sets the tone. Options range from a coworking membership at MaRS or WeWork (lowest overhead, maximum flexibility) to a short-term office sublease to a long-term commercial lease. For most Toronto startups, coworking is the right choice for the first 12 to 24 months; commit to a lease only when your revenue and team size make the economics justify it. Review our Toronto coworking spaces guide for options across every neighbourhood and price point.
Step 6: Build Your Team
Toronto’s talent pool is extraordinary: the University of Toronto, Ryerson (now Toronto Metropolitan University), York University, and dozens of colleges produce thousands of graduates annually in engineering, business, design, and health sciences. LinkedIn, Indeed, and specialized tech job boards like Work in Tech Canada are the primary hiring channels. Post-pandemic, many Toronto companies have adopted hybrid or remote-first models, allowing them to compete for talent nationally and internationally.
Ontario’s Employment Standards Act governs minimum wage, overtime, vacation, and termination notice requirements. Review these carefully before your first hire; violations create legal exposure. A brief consultation with an employment lawyer is worth the investment.
Step 7: Market and Grow
Toronto’s business community is deeply networked. The Toronto Region Board of Trade hosts regular events and connects members to government programs, corporate buyers, and industry peers. Industry associations, BNI chapters, and alumni networks are all active. Digital marketing in Toronto is competitive; SEO, LinkedIn for B2B, and Instagram for consumer brands are the dominant channels. Consider whether PR and earned media through Toronto’s robust business press (Globe and Mail, Toronto Star, BetaKit) makes sense for your launch strategy.
Ready to build your Toronto business empire? Join the Hustler’s Library community free and get the tools, guides, and connections you need to win in Canada’s biggest market.
Ready to Know Where You Stand?
The Business Journey dashboard maps your exact position across all 13 stages. Track your progress, unlock resources for each step, and build with a framework used by thousands of founders at Hustler's Library.
No credit card required · Takes 3 minutes · Personalized to your stage
