As we head into a new year, many Ontario small business owners are wondering what 2026 might bring. It’s completely normal to feel a bit nervous, but a little preparation can go a long way. By staying informed now, you can step into the new year with confidence.
Key Government & Registration Changes for 2026
Ontario frequently updates its systems on how businesses renew or manage their registrations. This may include changes to timelines or ID details needed for renewals, especially for Sole Proprietorships and Partnerships.
- Cutting Taxes on Small Businesses Act, 2025 (Effective on January 1st): In 2026, Ontario’s small business deduction rate is increasing from 8.3% to 9.9%. The business limit for a taxation year is thus increased from $500,000 to $600,000.
- Business Registration with a BN (Effective November 3, 2025): The CRA will no longer accept business number (BN) or CRA program account registrations by phone. You can instead register tax accounts for your business through Ontario Business Central.
Staying on top of updated registration requirements helps you avoid any surprises. If you ever need help updating or renewing your registration, our team makes the process quick and stress-free.
What To Do Now
Regarding the Small Business Tax Change:
- Schedule a tax planning meeting with your accountant before year-end to understand how the increased business limit affects your 2026 tax strategy.
- Review your corporate structure. If you’re close to the $600,000 threshold, discuss income-splitting or deferral strategies.
- Update your financial projections for 2026 to account for potential tax savings.
Regarding Business Number Registration:
- Verify your BN is registered online. Log in to your CRA My Business Account to confirm your registration is active.
- If you previously registered by phone, ensure your information is properly recorded in the CRA’s online system.
- Bookmark Ontario Business Central for quick access when you need to renew or update your registration.
- Set a calendar reminder 60 days before your registration expires to avoid last-minute stress.
New Funding Opportunities, Grants, & Support Programs for 2026
As each new year rolls in, Ontario often refreshes its small business support programs.
- Ontario Together Trade Fund (OTTF) (Effective in 2025/2026 fiscal year): The program, which opened in April 2025 to offset trade disruptions for small businesses, announced in November 2025 that it was receiving an additional $100 million in funding to support small and medium-sized enterprises in Ontario.
- RAISE Program (Effective 2025 to 2026): The Ontario government is investing $5 million to help small businesses join a free business development training program that also offers networking support, as well as a $10,000 grant for racialized and Indigenous entrepreneurs.
If you’re planning to grow or invest in your business in 2026, keeping an eye on these changes can make a big difference.
What to Do Now
For the Ontario Together Trade Fund:
- Assess your eligibility. Determine if your business has experienced trade-related disruptions that qualify for support.
- Gather documentation of how trade challenges (tariffs, supply chain issues, border delays) have impacted your revenue or operations.
- Check application deadlines. Visit the official OTTF website to confirm when the next intake period opens.
- Prepare financial statements showing your business’s size and trade-related expenses.
For the RAISE Program:
- Confirm your eligibility. Review if you qualify as a racialized or Indigenous entrepreneur.
- Register for the training program early, as spots may be limited.
- Prepare your business plan. The $10,000 grant will likely require a clear growth strategy.
- Connect with program alumni to learn about their experience and tips for success.
General Funding Prep:
- Subscribe to Ontario grant alerts so you’re notified when new programs launch.
- Create a “grant-ready” folder with your business plan, financial statements, and incorporation documents for quick applications.
New Employment Standards & Industry Impacts for 2026
Some industries may see new expectations or trends take shape in 2026. Whether through changing customer habits or updated industry standards, the Employment Standards Act (ESA) highlights a few upcoming changes:
- Compensation must be included in job postings.
- Employers must disclose if artificial intelligence (AI) is used in the hiring process.
- Job requirements for “Canadian experience” are prohibited.
- Unsuccessful applicants must be informed if the position has been filled within 45 days of their last interview.
- Employers must retain copies of job postings and associated application forms for three years.
Staying aware of what’s happening in your sector can help you plan and stay competitive. Even minor adjustments now can set your business up for a stronger year ahead.
What to Do Now
Update Your Hiring Practices:
- Audit all current job postings and ensure they include compensation ranges or salary information.
- Update your job posting templates to include all required elements (compensation, AI disclosure if applicable).
- Remove “Canadian experience” requirements from any existing postings or hiring criteria.
- Review your Applicant Tracking System (ATS) if you use AI screening tools, and prepare disclosure language for candidates.
Set Up Compliance Systems:
- Create a job posting archive. Set up a digital folder to store copies of all postings and applications for the required 3-year retention period.
- Draft a standard rejection email template that informs candidates when positions are filled.
- Set calendar reminders at 45 days post-interview to ensure timely communication with unsuccessful applicants.
- Train hiring managers on the new requirements, especially regarding AI disclosure and candidate communication.
If You Use AI in Hiring:
- Document what AI tools you use (resume screening software, video interview analysis, etc.).
- Create clear disclosure language explaining how and where AI is used in your hiring process.
- Decide where to disclose. In job postings, application confirmations, or interview invitations.
Timeline Note: Many of these ESA changes are already in effect or will take effect on January 1, 2026. Review your current practices immediately to ensure compliance.
How Ontario Business Central Helps You Prepare for 2026
While 2026 approaches, staying informed can help you take on the year with confidence. Whether you’re renewing a registration, exploring grants, or adapting to new industry expectations, Ontario Business Central is here to support you. Contact us today for friendly guidance and simple online services. We help you focus on growing your dream.
inquiries@ontariobusinesscentral.ca
Toll-Free: 1-800-280-1913
Local: 1-416-599-9009
Fax: 1-866-294-4363
Office Hours: 9:00am – 5:00pm
Monday – Friday E.S.T.
Ontario Business Central Inc. is not a law firm and cannot provide a legal opinion or advice. This information is to assist you in understanding the requirements of registration within the chosen jurisdiction. It is always recommended, when you have legal or accounting questions that you speak to a qualified professional.
