Business structures
Can you form an LLC in Ontario?
Searching for an Ontario LLC? Here's what Ontario offers instead and how to choose.
Verified. Last reviewed 2026-10-05. Always confirm with the official source before filing.
Ontario corporation vs US LLC
- Liability: both shield owners' personal assets from business debts.
- Tax: an Ontario corporation pays its own tax, and Canadian-controlled private corporations get the small business rate on active income. A US LLC is usually 'pass-through' in the US.
- Paperwork: a corporation must keep a minute book, file a T2 every year and file an Ontario annual return.
Your Ontario options
- Sole proprietorship: one owner, no liability shield, cheapest.
- General partnership: two or more owners, no liability shield.
- Corporation: limited liability, separate taxpayer. This is the LLC alternative.
- LLP: only for professions whose governing law permits it.
Canadians with a US LLC
Canada generally treats a US LLC as a corporation for tax purposes, while the US may treat it as pass-through. That mismatch can cause double taxation. Speak to a cross-border tax professional before forming one.
Frequently asked questions
Is there an LLC in Canada?
No. Canadian provinces offer corporations, partnerships and sole proprietorships. A corporation is the closest equivalent to an LLC.
What is the Canadian equivalent of an LLC?
A corporation, incorporated provincially (for example, in Ontario) or federally.
Can anyone form an LLP in Ontario?
No. Ontario LLPs are restricted to professions whose governing legislation allows them, such as lawyers and chartered professional accountants.