{"id":10383,"date":"2025-10-23T10:00:00","date_gmt":"2025-10-23T14:00:00","guid":{"rendered":"https:\/\/www.ontariobusinesscentral.ca\/blog\/?p=10383"},"modified":"2025-11-26T15:44:53","modified_gmt":"2025-11-26T20:44:53","slug":"the-right-business-structure-for-your-side-hustle-ontario","status":"publish","type":"post","link":"https:\/\/www.ontariobusinesscentral.ca\/blog\/the-right-business-structure-for-your-side-hustle-ontario\/","title":{"rendered":"Choosing the Right Business Structure for Your Side Hustle (Side Hustle Series)"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">More and more Canadians are starting side hustles, from dog walking and home baking to offering freelance services. If you\u2019re thinking of turning your skills into income, choosing the right business structure is one of the most important steps to set yourself up for success.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are a few different types of business structures to choose from, and each type offers different value. Particular business structures are better suited for other goals, from cost to tax implications. We\u2019ll provide a brief overview of choosing the right business structure to suit your needs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.ontariobusinesscentral.ca\/blog\/why-start-a-side-hustle-in-canada\/\">Why Start a Side Hustle in Canada? (Side Hustle Series)<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.ontariobusinesscentral.ca\/blog\/register-a-business-while-working-full-time-ontario\/\">How to Register a Business While Working Full-Time (Side Hustle Series)<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">3 Common Business Structures in Ontario<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In Ontario, there are three different types of business structures:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Sole Proprietorship: <\/strong>Viewed as a small business with one owner, it is inexpensive to start.<\/li>\n\n\n\n<li><strong>General Partnership: <\/strong>Two or more owners, which is also viewed as a small business and is affordable to begin.<\/li>\n\n\n\n<li><strong>Corporation<\/strong>: A separate legal entity, offering liability protection and tax flexibility, though often more than what\u2019s needed for starting a side hustle.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Why Many Choose a Sole Proprietorship in Ontario<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For starting a side hustle, a sole proprietorship is a good fit for operating the business independently. A few of the advantages of this business structure include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Easy to start and cancel<\/li>\n\n\n\n<li>Business taxes are included in your tax return filing<\/li>\n\n\n\n<li>Comes with personal liability for the sole owner<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019re sold on going with this business structure, we at Ontario Business Central can help get you started with <a href=\"https:\/\/www.ontariobusinesscentral.ca\/forms\/business-registration.php\">registration<\/a>. The cost for starting <strong>a sole proprietorship business in Ontario is approximately:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>$66 (our fee) + $60 (government fee) + $16 (OBC handling fee) + 13% HST = $152.66&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At OBC, we also offer a few other add-on items during your registration, such as a name search, domain name registration, and payroll registration to help cover all your bases.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is worth noting that should you consider adding a partner to your business, you would need to cancel your registration and begin the process for a General Partnership.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.ontariobusinesscentral.ca\/start-a-business-options.php\"><img decoding=\"async\" width=\"1000\" height=\"524\" src=\"https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-content\/uploads\/2025\/08\/start-a-business-7b.webp\" alt=\"Start your corporation or registration\" class=\"wp-image-10218\" srcset=\"https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-content\/uploads\/2025\/08\/start-a-business-7b.webp 1000w, https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-content\/uploads\/2025\/08\/start-a-business-7b-300x157.webp 300w, https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-content\/uploads\/2025\/08\/start-a-business-7b-768x402.webp 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">When to Consider a General Partnership<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A partnership or general partnership is another option to consider, particularly if you\u2019re starting a side hustle with another person or a small group of people. These are ideal for collaboration to combine differing expertise, such as a freelance web developer working alongside a marketing expert to find business opportunities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">General Partnerships involve shared liabilities, profits, and losses. Keep in mind that you are able to add a new partner or remove one, as long as the business remains a partnership. In addition, you would need to cancel your registration if you wanted to become a Sole Proprietorship.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Is Incorporating in Ontario Worth It for a Side Hustle?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">It all depends on your goals. <a href=\"https:\/\/www.ontariobusinesscentral.ca\/incorporation-online.php\">Incorporating<\/a> your side hustle in Ontario turns it into its own entity, showing the world you\u2019re more than a small business. It also comes with various benefits:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Name protection within your chosen industry<\/li>\n\n\n\n<li>Personal liability protection<\/li>\n\n\n\n<li>Tax advantages (corporations are taxed at a lower rate than individuals)<\/li>\n\n\n\n<li>Flexibility to change your business as it grows<\/li>\n\n\n\n<li>Professional image for the business<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">How to Choose the Right Fit<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You\u2019ll want to ask yourself:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>How serious is this side hustle?<\/strong>\n<ul class=\"wp-block-list\">\n<li>Ideating long-term goals<\/li>\n\n\n\n<li>Review potential for future expansions<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Are you working alone?<\/strong><\/li>\n\n\n\n<li><strong>What is your liability comfort level?\u00a0<\/strong><\/li>\n\n\n\n<li><strong>Do you need or want a partner to rely on?<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Without getting too into the weeds, know that choosing your business structure is not always an easy decision. Ontario Business Central is here to make it a little easier. We can help you register or incorporate quickly and easily, so there\u2019s no need to navigate it alone.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Your Side Hustle, Your Future<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Choosing the right structure sets the stage for your side hustle\u2019s success. Whether you&#8217;re going solo or teaming up, Ontario Business Central is <a href=\"https:\/\/www.ontariobusinesscentral.ca\/contactus.php\">here to help<\/a> make it official, so you can focus on doing what you love.<\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><a href=\"&#109;&#x61;&#105;&#x6c;&#116;&#x6f;&#58;&#x69;&#110;&#x71;&#117;&#x69;&#114;&#x69;&#101;&#x73;&#64;&#x6f;&#110;&#x74;&#97;&#x72;&#105;&#x6f;&#98;&#x75;s&#x69;n&#x65;s&#x73;c&#x65;n&#x74;r&#x61;l&#x2e;c&#x61;\">&#x69;&#x6e;&#113;u&#x69;&#x72;&#105;&#101;s&#x40;&#x6f;&#110;&#116;a&#x72;&#x69;&#111;bu&#x73;&#x69;&#110;e&#x73;&#x73;&#99;&#101;n&#x74;&#x72;&#97;&#108;&#46;&#x63;&#x61;<\/a><br>Toll-Free: 1-800-280-1913<br>Local: 1-416-599-9009<br>Fax: 1-866-294-4363<br>Office Hours: 9:00am \u2013 5:00pm<br>Monday \u2013 Friday E.S.T.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>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.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>More and more Canadians are starting side hustles, from dog walking and home baking to&#8230;<\/p>\n","protected":false},"author":3,"featured_media":10384,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[97,188],"tags":[180,146,144,179,134,172,143],"class_list":["post-10383","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-startup-guides-tips","category-side-hustles","tag-business-planning","tag-corporation","tag-general-partnership","tag-new-business-owners","tag-ontario","tag-side-hustle","tag-sole-proprietorship"],"rttpg_featured_image_url":{"full":["https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-content\/uploads\/2025\/10\/businesswoman-choosing-business-structure.webp",1150,767,false],"landscape":["https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-content\/uploads\/2025\/10\/businesswoman-choosing-business-structure.webp",1150,767,false],"portraits":["https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-content\/uploads\/2025\/10\/businesswoman-choosing-business-structure.webp",1150,767,false],"thumbnail":["https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-content\/uploads\/2025\/10\/businesswoman-choosing-business-structure-150x150.webp",150,150,true],"medium":["https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-content\/uploads\/2025\/10\/businesswoman-choosing-business-structure-300x200.webp",300,200,true],"large":["https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-content\/uploads\/2025\/10\/businesswoman-choosing-business-structure-1024x683.webp",1024,683,true],"1536x1536":["https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-content\/uploads\/2025\/10\/businesswoman-choosing-business-structure.webp",1150,767,false],"2048x2048":["https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-content\/uploads\/2025\/10\/businesswoman-choosing-business-structure.webp",1150,767,false],"obc-archive-card":["https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-content\/uploads\/2025\/10\/businesswoman-choosing-business-structure-720x405.webp",720,405,true],"obc-archive-card-2x":["https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-content\/uploads\/2025\/10\/businesswoman-choosing-business-structure.webp",1150,767,false],"obc-archive":["https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-content\/uploads\/2025\/10\/businesswoman-choosing-business-structure-960x540.webp",960,540,true],"obc-archive-2x":["https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-content\/uploads\/2025\/10\/businesswoman-choosing-business-structure.webp",1150,767,false],"rt_custom":["https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-content\/uploads\/2025\/10\/businesswoman-choosing-business-structure.webp",1150,767,false]},"rttpg_author":{"display_name":"Laura Harvey","author_link":"https:\/\/www.ontariobusinesscentral.ca\/blog\/author\/laura-harvey\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/www.ontariobusinesscentral.ca\/blog\/category\/starting-a-business\/startup-guides-tips\/\" rel=\"category tag\">Startup Guides &amp; Tips<\/a> <a href=\"https:\/\/www.ontariobusinesscentral.ca\/blog\/category\/tips-resources\/side-hustles\/\" rel=\"category tag\">Side Hustles<\/a>","rttpg_excerpt":"More and more Canadians are starting side hustles, from dog walking and home baking to...","_links":{"self":[{"href":"https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-json\/wp\/v2\/posts\/10383","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-json\/wp\/v2\/comments?post=10383"}],"version-history":[{"count":2,"href":"https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-json\/wp\/v2\/posts\/10383\/revisions"}],"predecessor-version":[{"id":10387,"href":"https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-json\/wp\/v2\/posts\/10383\/revisions\/10387"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-json\/wp\/v2\/media\/10384"}],"wp:attachment":[{"href":"https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-json\/wp\/v2\/media?parent=10383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-json\/wp\/v2\/categories?post=10383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ontariobusinesscentral.ca\/blog\/wp-json\/wp\/v2\/tags?post=10383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}