Becoming your own boss sounds empowering—and it can be. But if you’re thinking about starting a small business or going full-time with your side hustle in Ontario, it’s important to look beyond just the money you’ll make. Many first-time entrepreneurs focus on potential income and forget to factor in the real, often hidden, costs of self-employment. These expenses can sneak up on you if you’re not prepared, so let’s walk through what it actually costs to work for yourself in Ontario.
- Business Registration & Legal Costs
In Ontario, registering a sole proprietorship will cost you about $60–$80 and needs to be renewed every 5 years. If you choose to incorporate your business federally or provincially, the costs can range from $200–$500 or more, plus legal fees if you hire help. You might also want to register a business bank account, which could come with monthly fees. While registration isn’t a huge cost, it’s the first step to becoming legit—and legally protected. - Insurance for You and Your Business
When you’re self-employed, you don’t get workplace benefits. That means health, dental, and vision plans become your responsibility. You might also need business liability insurance, especially if you meet clients, sell products, or provide services that could result in a claim. Depending on your industry, you may also want equipment coverage, professional liability, or errors and omissions insurance. These costs vary, but basic plans typically start at around $50–$100 per month. - Taxes & Accounting Services
One of the most common surprises for new business owners? Taxes. If you earn more than $30,000/year, you may be required to register for a GST/HST number. Even if you earn less, you’ll still need to report business income and may want help navigating self-employment deductions. Many self-employed individuals hire a bookkeeper or accountant—fees can range from $300–$1,000+ per year, depending on the complexity of your business. Don’t forget: it’s your responsibility to set aside 20–30% of your profits to cover tax time. - Tools, Software & Subscriptions
Whether you’re creating content, doing deliveries, selling crafts, or coaching online, you’ll likely need some digital tools. Common costs include:
- Website/domain hosting: $10–$30/month
- Canva Pro, Adobe, or design tools: $15–$80/month
- Accounting apps like Wave or QuickBooks: free to $40/month
- Scheduling platforms or CRM tools: varies based on scale
Even if you start with free versions, these costs can add up as you grow your business and want to look more professional.
- Workspace, Equipment & Utilities
You may be working from home, but you’ll still have extra costs—think printer ink, faster internet, office furniture, or a separate phone line. If your hustle involves crafting, filming, tutoring, or consulting, you might also need lighting, shipping supplies, or extra space. And if you eventually move into a shared workspace, expect monthly fees ranging from $200–$500+, depending on location and setup.
How Job Skills Can Help You Plan for the Real Costs of Self-Employment
When you’re excited to be your own boss, it’s easy to overlook the hidden costs—but knowing what to expect puts you in control. That’s where Job Skills comes in. Our Self-Employment Services are designed to help you understand startup costs, create realistic budgets, and prepare for long-term success. Not sure if you’re ready to handle all these pieces? Try the Right Fit for You tool to explore what kind of business matches your lifestyle and resources. And if you’re a newcomer to Canada, our Self-Employment Pathways for Newcomers program offers tailored support for navigating the business landscape in Ontario. Follow us on Facebook, Instagram, and LinkedIn to stay informed and get the support you need—without any surprises.
