Best Business Ideas in Toronto - 18 Profitable Options for 2026

Best Business Ideas in Toronto 2026

Toronto crossed the historic 7 million population mark in 2024, cementing its position as North America's fastest-growing major city. For entrepreneurs, this growth translates into opportunity. Nearly half of Toronto's residents are foreign-born, creating one of the world's most diverse consumer markets. Add in a thriving tech sector, aging population, and strong sustainability push, and you have a city primed for new business ventures.

But choosing the right business idea requires more than spotting a trend. You need to understand local market dynamics, licensing requirements, and neighborhood fit. You also need the right financial infrastructure from day one. Modern business banking solutions like Venn help entrepreneurs manage multi-currency transactions, reduce fees, and streamline operations from launch, giving you a competitive edge before you serve your first customer.

This guide breaks down 18 profitable business ideas tailored specifically for Toronto entrepreneurs in 2026, complete with startup costs, licensing requirements, and practical next steps.

Why Toronto Is Ideal for Starting a Business in 2026

Toronto has become a magnet for international residents due to progressive immigration policies, favorable laws, and better access to public services. The city offers near-endless economic opportunities for entrepreneurs willing to serve its diverse population.

In 2023, more than 96,000 businesses were registered in the City of Toronto alone, with over 230,000 across the Toronto Region. This reflects a dynamic entrepreneurial ecosystem with strong support infrastructure for small businesses, including free licensing consultation services for businesses with under 10 employees through the Toronto Business Development Centre.

The diverse customer base spans multiple ethnic neighborhoods, each with distinct needs and preferences. Whether you're targeting young professionals in Liberty Village, families in North York, or newcomers in Scarborough, Toronto offers concentrated customer segments ready to be served.

Key Trends Shaping Toronto Business Opportunities in 2026

AI and Digital Transformation

Canadian SMEs increasingly seek partners who can help them implement AI solutions, automate repetitive tasks, and leverage data for better decision-making. This creates substantial opportunities for consultants and service providers who can bridge the technology gap for businesses that lack in-house expertise.

Sustainability and Clean Tech

Canada's commitment to net-zero emissions by 2050 fuels explosive growth in energy efficiency sectors. The cleantech industry attracts $5.3 billion in federal climate finance by 2026, creating opportunities across the value chain from energy audits to solar installations.

Aging Population Services

The 1.1 million Toronto residents aged 65 and older constitute nearly 16% of the population. This demographic shift will intensify over coming decades as baby boomers continue retiring, creating demand for healthcare, mobility, and lifestyle services.

Newcomer and Multicultural Services

Within Canada, 43% of all new immigrants settle in the Greater Toronto Area. Recent newcomers increasingly arrive from India, China, Philippines, Pakistan, and Nigeria, creating demand for settlement services, translation, and culturally-specific products.

Business Acquisitions

More than 60% of small and medium-sized enterprises are led by someone aged 50 or older. With many business owners preparing to retire, the environment is ideal for entrepreneurs who prefer acquiring existing businesses rather than starting from scratch.

18 Best Business Ideas to Start in Toronto in 2026

1. Social Media Management Agency

Social media management stands out as one of the most practical low-cost business ideas with high profit potential for 2026. Toronto's diverse SME community needs help maintaining consistent online presence across multiple platforms.

• Startup Cost: $500-$2,000

• Profit Potential: High (40-60% margins)

• Toronto Fit: Ideal for serving the city's diverse SME community; can operate from home

• Licensing: No municipal license required; register business name with Service Ontario

• Time to Revenue: 1-2 months

2. Home Energy Efficiency Consulting

Canada's push toward net-zero by 2050 fuels explosive growth in energy efficiency. A trending business model involves coordinating heat-pump installations and solar retrofits for homeowners, bundling audits, permits, and incentives into seamless packages.

• Startup Cost: $2,000-$7,000

• Profit Potential: High (45-65% margins)

• Toronto Fit: Strong demand in suburban areas like Scarborough, North York, and Etobicoke

• Licensing: May require certifications; check with Natural Resources Canada

• Time to Revenue: 2-3 months

3. Residential and Commercial Cleaning Services

Cleaning services offer low barriers to entry with consistent demand. Startup costs range from $500 to $2,000, covering supplies, registration fees, insurance premiums, and licensing requirements.

• Startup Cost: $500-$2,000

• Profit Potential: Medium (30-50% margins)

• Toronto Fit: High demand in condo-heavy areas downtown and in growing suburbs

• Licensing: No municipal license required; liability insurance recommended

• Time to Revenue: 1-2 weeks

4. Food Truck or Mobile Food Vendor

Operating a food truck is a profitable business idea, with the Canadian street vendor market reaching $234.9 million. Costs range from $40,000 to $200,000, lower than opening a brick-and-mortar restaurant.

• Startup Cost: $40,000-$200,000

• Profit Potential: High (potential $500K annual revenue)

• Toronto Fit: Events, festivals, downtown lunch crowds, entertainment districts

• Licensing: Must comply with Ontario Food Premises Regulation and Toronto's Licensing By-Law No. 545; requires DineSafe "PASS" status and Food Handlers Certification

• Time to Revenue: 1-3 months

5. AI Consulting for Small Businesses

AI adoption is accelerating as businesses seek increased productivity and efficiency. Small businesses need guidance implementing AI solutions without enterprise-level budgets.

• Startup Cost: $5,000-$10,000

• Profit Potential: High (60-80% margins)

• Toronto Fit: Strong demand from Toronto's tech-savvy SME community

• Licensing: No specific license; professional certifications add credibility

• Time to Revenue: 2-4 months

6. Personal Training and Fitness Coaching

The Canadian fitness industry is expected to reach $376 million by 2026. Personal trainers earn an average of $28.58 per hour, with potential for higher rates through specialized services.

• Startup Cost: $1,000-$5,000

• Profit Potential: Medium-High

• Toronto Fit: Condo gyms, parks, virtual training for busy professionals

• Licensing: Certifications recommended; no municipal license required

• Time to Revenue: 1-2 months

7. Snow Removal and Winter Services

Snow removal keeps commercial and residential spaces safe during winter weather. This seasonal business involves clearing sidewalks, driveways, parking lots, and entryways of snow and ice.

• Startup Cost: $3,000-$15,000

• Profit Potential: High (seasonal but lucrative)

• Toronto Fit: Essential service; strong demand in residential suburbs

• Licensing: No municipal license; liability insurance essential

• Time to Revenue: Immediate (winter season)

8. Bookkeeping and Accounting Services

Many freelancers and businesses need help with their finances. Bookkeeping offers recurring demand and the possibility of long-term client relationships.

• Startup Cost: $1,000-$5,000

• Profit Potential: High (recurring revenue model)

• Toronto Fit: Serve the 96,000+ registered businesses in Toronto

• Licensing: CPA designation for full accounting services; bookkeeping can start without

• Time to Revenue: 1-3 months

Bookkeeping professionals often recommend Venn to their clients as a modern business banking solution that integrates directly with QuickBooks and Xero, automating payables and simplifying reconciliation for both the bookkeeper and their clients.

9. Photography and Videography Services

The photography industry grows at a CAGR exceeding 6%. Professional photographers earn around $100 to $250 per hour depending on experience and service type.

• Startup Cost: $3,000-$10,000

• Profit Potential: Medium-High

• Toronto Fit: Weddings, corporate events, real estate, multicultural celebrations

• Licensing: No municipal license required

• Time to Revenue: 1-2 months

10. Sustainable Fashion Resale Platform

Fashion resale popularity rises with projected 127% growth by 2026, eight times faster than overall apparel marketing in North America. The model works in both weaker and stronger economic conditions.

• Startup Cost: $3,000-$5,000

• Profit Potential: High (up to 70% margins on commissions)

• Toronto Fit: Strong eco-conscious consumer base; leverage Kensington Market, Queen West vibes

• Licensing: No municipal license for online; retail location requires business registration

• Time to Revenue: 2-4 months

11. Delivery and Courier Services

Courier businesses thrive in areas with many offices and business establishments. Delivery drivers in Canada earn an average of $20.80 per hour.

• Startup Cost: $5,000-$15,000

• Profit Potential: Medium

• Toronto Fit: High demand in dense urban areas; partner with local businesses

• Licensing: Driver's license; commercial vehicle insurance

• Time to Revenue: Immediate

12. Newcomer Settlement and Integration Services

With 43% of Canadian immigrants settling in the GTA, there's strong demand for settlement services including document translation, credential recognition guidance, housing assistance, and cultural orientation.

• Startup Cost: $2,000-$10,000

• Profit Potential: Medium-High

• Toronto Fit: Serve newcomers in Scarborough, North York, and Brampton

• Licensing: No specific license required

• Time to Revenue: 2-3 months

13. Property and Condo Management Services

Toronto's massive condo market creates consistent demand for property management services. This business offers recurring revenue from monthly management fees.

• Startup Cost: $5,000-$20,000

• Profit Potential: High (recurring revenue)

• Toronto Fit: Downtown and midtown condo buildings

• Licensing: Real estate license for full property management; some services can start without

• Time to Revenue: 3-6 months

14. Digital Marketing Agency

Digital marketers in Canada earn an average of $57,500 per year, with experienced professionals earning up to $78,000. Toronto's competitive business environment drives demand for online visibility.

• Startup Cost: $1,000-$5,000

• Profit Potential: High

• Toronto Fit: Serve local businesses competing for online visibility

• Licensing: No municipal license required

• Time to Revenue: 1-3 months

15. Handyman and Home Repair Services

Handyman services are profitable, with many homeowners and businesses needing repair jobs regularly. The average salary is $25.53 per hour in Canada.

• Startup Cost: $2,000-$10,000

• Profit Potential: Medium

• Toronto Fit: Aging housing stock; condo maintenance needs

• Licensing: Trade certifications for electrical/plumbing; general handyman work less regulated

• Time to Revenue: 1-2 weeks

16. E-commerce and Dropshipping Business

Online businesses offer low overhead costs and the ability to reach a broad audience quickly. Benefits include minimal physical inventory needs, flexible work locations, and scalable marketing strategies.

• Startup Cost: $500-$5,000

• Profit Potential: Variable (depends on niche and execution)

• Toronto Fit: Can operate from anywhere; leverage Toronto's diverse consumer base

• Licensing: Business registration; HST registration if revenue exceeds $30,000

• Time to Revenue: 1-3 months

E-commerce businesses selling internationally benefit significantly from Venn's multi-currency accounts. With real local USD, CAD, EUR, and GBP accounts, entrepreneurs can receive payments from Stripe, Shopify, or PayPal without costly FX conversions, keeping more profit in their pocket.

17. Pet Care and Mobile Grooming Services

Mobile pet grooming offers convenient, in-home service that supports pet health and hygiene. Toronto's high pet ownership in urban areas creates strong demand.

• Startup Cost: $5,000-$20,000 (vehicle and equipment)

• Profit Potential: Medium-High

• Toronto Fit: Midtown, Beaches, High Park areas

• Licensing: No municipal license; consider pet first aid certification

• Time to Revenue: 1-2 months

18. Telehealth and Senior Care Services

An aging population drives healthcare's rapid expansion, with 143,800 vacancies in the sector. Telehealth services specializing in preventive checkups, AI chatbots for medication reminders, and fall-risk assessments offer strong growth potential.

• Startup Cost: $8,000-$25,000

• Profit Potential: High (65% margins from insurer partnerships)

• Toronto Fit: Growing senior population; tech-savvy healthcare consumers

• Licensing: Healthcare regulations apply; consult with regulatory bodies

• Time to Revenue: 3-6 months

Business Ideas Comparison Table

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How to Start a Business in Toronto: Essential Steps

Step 1: Validate Your Business Idea

Good business ideas solve problems for specific groups of people. Before moving forward, research local competition and test demand through social media or small pilots. Talk to potential customers in your target neighborhood to understand their needs and willingness to pay.

Step 2: Register Your Business

Your first step to becoming a licensed business owner in Toronto is registering your business name with the province. Submit documents proving the legal structure of your business, whether sole proprietorship, partnership, or corporation. Ontario small business startup registration starts at $134 plus tax.

Step 3: Obtain Necessary Licenses and Permits

All businesses in Toronto need to secure proper licenses, permits, and inspections before opening. The typical restaurant application requires a $245.94 application fee plus a $274.92 license fee upon approval. A new applicant user fee of approximately $239.11 per review is proposed for January 1, 2026.

Step 4: Set Up Your Business Banking

This step separates successful businesses from those that struggle with cash flow and financial management. Open dedicated business accounts to separate personal and business finances from day one.

Venn provides the modern banking foundation every Toronto business needs. Access local CAD and USD accounts for businesses dealing with US suppliers or customers. Get corporate cards with 1% unlimited cashback on all spending, with no minimum spend requirements. Benefit from competitive FX rates for international transactions, and integrate directly with QuickBooks and Xero for automated accounting. Venn also offers free, unlimited Interac e-Transfer® on all plans, saving you money on every vendor payment.

Step 5: Understand Your Tax Obligations

Register for HST if revenue exceeds $30,000. Set up payroll accounts if hiring employees. Keep meticulous records for tax deductions, and consider working with a bookkeeper from the start to avoid costly mistakes.

Setting Up Your Business Finances the Right Way

Starting a business is exciting, but managing finances can quickly become overwhelming without the right tools. Many Toronto entrepreneurs make the mistake of using personal bank accounts or traditional big-bank business accounts that charge excessive fees and offer limited functionality.

Multi-Currency Capabilities

If you're importing products, paying international suppliers, or selling to US customers, you need real local currency accounts. Venn provides actual CAD, USD, EUR, and GBP accounts, meaning you can receive payments in foreign currencies without automatic conversion fees. This is particularly valuable for Toronto's e-commerce businesses and those serving the US market.

Expense Management Built In

Venn's corporate cards offer 1% unlimited cashback on all spending, with no minimum spend requirements. Unlike competitors that require $25,000+ monthly spend to unlock rewards, Venn makes cashback accessible from your first purchase. The multi-currency card automatically uses the currency you're paying in first, saving you on FX fees. OCR receipt capture makes expense tracking effortless.

Seamless Accounting Integration

Venn integrates directly with QuickBooks and Xero, automating your payables and simplifying reconciliation. This means less time on bookkeeping and more time growing your business.

Free Local Transfers

Venn offers free, unlimited Interac e-Transfer® on all plans, plus low-cost ACH/EFT transfers depending on your plan. For businesses paying suppliers, contractors, or employees, these savings add up quickly. Your funds are covered under CDIC insurance protection, giving you peace of mind.

Toronto Business Licensing: What You Need to Know

The City of Toronto operates under a multi-tiered licensing system that varies significantly by business type, location, and scale of operations. Unlike some municipalities with blanket business registration requirements, Toronto takes a sector-specific approach.

Recent Updates for 2026:

As of January 1, 2025, the City updated licensing and zoning bylaws for restaurants, bars, and entertainment venues. New integrated health and municipal licensing for restaurants reduces duplicate requirements and speeds approval processes.

Key Resources:

• City of Toronto Business Regulations: toronto.ca/business-economy

• BizPal for federal and provincial permits

• Toronto Business Development Centre offers free licensing consultation for businesses with under 10 employees

Begin your licensing research at least 6 months before your planned business launch. This allows time to address unexpected requirements or delays.

Frequently Asked Questions

Q: What is the cheapest business to start in Toronto?

A: Service-based businesses like social media management, cleaning services, and freelance consulting can often be started for under $2,000. While some ventures can launch for under $1,000, most small business owners in Canada spend between $5,000 and $10,000 to get fully set up.

Q: Do I need a business license to operate in Toronto?

A: In most cases, yes. The City of Toronto requires a business licence for many types of businesses, including retail stores, restaurants, and personal service providers. Licensing ensures compliance with local bylaws, safety standards, and zoning rules.

Q: Can I run a business from home in Toronto?

A: Yes. Many service-based businesses can legally operate from home with minimal overhead. However, you should confirm zoning rules for your address and ensure your activities don’t violate noise, signage, or traffic bylaws.

Q: How much does it cost to register a business in Ontario?

A: Registering a sole proprietorship or partnership in Ontario typically costs around $60 through the Ontario Business Registry. Other startup costs are usually minimal, though fees vary depending on your business structure and whether you incorporate.

Q: How do I accept payments from U.S. customers as a Toronto business?

A: You need a banking solution that supports real USD accounts. Platforms like Venn provide local U.S. account details that allow you to send and receive ACH payments, helping Toronto businesses avoid costly wire fees and unnecessary currency conversion.

Based on internal analysis of total markups and FX fees charged by major Canadian financial institutions in April 2025.

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**Disclaimer:** This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Venn Software Inc or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.