You’ve been running your business for a couple of years, revenue is climbing, and three different people have told you to incorporate. Before you click anything, let’s walk through what it actually costs, how the steps go, and the math that decides whether incorporation pays off for you or just adds paperwork.
Key takeaways
- Ontario provincial incorporation is $300 online. Federal is $200. Add $30 to $80 for a NUANS report if you want a named corporation.
- Most Durham Region small businesses go provincial. Lower cost, lighter paperwork, and you can always continue to federal later.
- Incorporation is a tax deferral, not a free tax cut. The benefit kicks in only on dollars you leave inside the corporation.
- Your CRA business number can be created automatically during your registry filing. HST and payroll accounts are added later when you actually need them.
The cost to incorporate a business in Ontario (2026).
Two paths. Two prices. One decision.
| Path | Fee | Where to file |
|---|---|---|
| Ontario (provincial) | $300 | Ontario Business Registry |
| Federal (Corporations Canada) | $200 | corporationscanada.ic.gc.ca |
A NUANS name search report sits on top of the filing fee if you go with a named corporation. Third-party NUANS providers usually charge $30 to $80. Skip it only if you choose a numbered corporation.
The all-in cost for most Ontario small business owners ends up between $300 and $400 if you do it yourself online. Add legal fees only if you have a complicated ownership structure, multiple share classes, or a partner buyout to think through.
Federal versus provincial: which one fits your business.
Both give you a real corporation. Both protect you from personal liability the same way. The differences come down to where you operate, what your name needs to do, and how much paperwork you want each year.
Most small businesses incorporated in Whitby, Ajax, Pickering or Oshawa go provincial. The cost is lower, the paperwork is lighter, and you can always continue to federal later if you expand.
The six steps to incorporate in Ontario.
The whole online process runs about an hour if you have your name and director information ready.
- Decide named or numbered. A numbered corporation (like 1234567 Ontario Inc.) needs no NUANS report. A named corporation does.
- Order a NUANS name search if naming. The report is valid for 90 days.
- Set up your Ontario Business Registry profile if you do not already have one. You will need a ONe-key login.
- File your Articles of Incorporation through the registry. You will choose your share structure, list directors, and pay the $300 fee.
- Receive your Certificate of Incorporation, usually within minutes by email.
- Set up your minute book and prepare initial corporate by-laws. This is where most do-it-yourself founders cut corners and regret it later. A clean minute book matters when you sell, raise money, or get audited.
That is the legal incorporation done. Tax registration is a separate step.
Do you get a CRA business number automatically when you incorporate?
This trips up a lot of new business owners.
When you incorporate provincially in Ontario, the system can generate your CRA business number (the nine-digit BN) automatically through the integrated registration. You will see the option during your registry filing. If you skip it, you will need to register separately at canada.ca.
Federal incorporation also issues a business number through the CRA at the time of registration.
A business number alone does not register you for HST, payroll, or import accounts. Those are separate program accounts under the same BN, and you add them when you need them. You only need an HST account once you cross $30,000 in revenue over four consecutive quarters. You only need a payroll account when you start paying employees or yourself a salary.
Self-employed versus incorporated: when the math works.
This is the question every business owner actually wants answered. Here is the honest version.
Incorporation pays off when you can leave money inside the corporation. The federal small business tax rate is 9% and Ontario’s small business rate is 3.2%, for a combined 12.2% on the first $500,000 of active business income. Compare that to your personal marginal rate, which in Ontario can run 43% to 53% on the same dollar.
The catch: you only get the tax benefit on money you do not take out. The moment you pay yourself a dividend or a salary, the personal tax kicks in. Incorporation is a tax deferral and an investment vehicle, not a free tax cut.
When incorporation makes sense.
- You earn meaningfully more than you spend personally and want to invest the surplus
- You want liability protection for client work, real estate, or product sales
- You plan to hire, raise capital, or sell the business one day
- Your industry expects incorporation (medical professional corporations, contractors, consultants billing larger clients)
When it does not.
- All your business income gets spent on personal expenses each year
- You are still figuring out if the business will survive year two
- Your revenue is under $50,000 and you have no liability exposure
Worked example: Sarah’s Whitby physiotherapy clinic.
Sarah runs a physiotherapy clinic in Whitby. She bills $280,000 a year and her clinic costs (rent, supplies, part-time receptionist) come to $130,000. That leaves $150,000 of business profit.
Sarah needs $90,000 a year personally to live. If she incorporates and pays herself $90,000 in dividends, the corporation route costs her roughly $16,000 less in combined tax than staying a sole proprietor on $150,000 of net business income, and it leaves a meaningful chunk of the profit working inside the corporation as deferred income for retirement, equipment, or growth.
Numbers vary based on dividend type, RRSP room, and other deductions, so treat this as directional, not personal advice.
Is incorporating right for your business?
If you are weighing this decision, the answer is rarely a clean yes or no. It depends on your revenue trend, your personal cash needs, your liability exposure, and what you want the business to look like in five years.
Book a free 15-minute call with the EK CPA Pro team and we’ll walk through your specific numbers. We work with business owners across Oshawa, Whitby, Ajax, Pickering, Clarington and the rest of Durham Region. Book a call.
This article is for general information only and does not replace professional tax advice. Tax rules change, and your specific situation matters. Always confirm with a qualified CPA before making tax decisions.
