How to start a construction business in Canada

Statistics Canada's June 2026 business counts data lists 262,066 construction businesses with no employees. That's more than a quarter of a million firms run by one owner with no staff on payroll. If you're working out how to start a construction business in Canada, the figure is a useful starting point. Most new firms begin small, and the decisions that matter first are about being set up properly rather than growing fast.

Those early decisions aren't complicated, but they're easy to put off until a customer, an inspector or the CRA forces the question. Getting them done in the first month means every quote you send goes out from a business that's registered, insured and ready to be paid.

Short answer To start a construction business in Canada, choose your trade and the customers you'll serve, pick a business structure and register your name with your province, and get a CRA business number. Register for GST/HST once you pass the $30,000 small supplier threshold, or earlier if you choose. Arrange workers' compensation coverage and liability insurance, confirm any trade licence or permits your work needs, then set up how you'll quote, invoice and collect payment before your first job.

This guide is written for trade and renovation contractors starting out on their own or with a small crew. It doesn't cover large general contracting, where bonding, tendering and project financing add a separate set of steps.

Decide what you'll build, and for whom

Before any paperwork, be specific about the work. "Construction" covers everything from finishing basements to pouring foundations, and each has different tools, insurance needs and licensing rules. A clear focus also makes the next steps easier, because you'll know which regulators and which customers you're dealing with.

The second decision is who you'll work for. Homeowners, property managers and general contractors pay differently, ask for different paperwork and expect different response times. Residential work also affects your workers' compensation obligations in some provinces, which we'll come to shortly.

Choose a structure and register your business

With the work defined, the next question is how the business is set up legally. Most small contractors start as a sole proprietor, where the business and the owner are the same legal person. It's quick and inexpensive. Incorporation separates the business from you, which can help with liability and tax planning, but it adds cost and annual filings.

There's no single right answer, and it's worth an hour with an accountant before you commit. If you'll trade under a name other than your own, register that name with your province before it appears on a quote, a truck or a website. Each province runs its own registry, and the process is usually online.

Get a business number and decide on GST/HST

Once the business exists, it needs a federal identity. The CRA's business number (BN) is the reference you'll use for GST/HST, payroll and corporate tax. If you don't have one yet, the CRA issues it when you register for GST/HST, at the same time as your account.

As for when you must register, the CRA applies a small supplier threshold of $30,000 in taxable sales. Under the CRA's registration timing rules, you must register once you exceed it in a single calendar quarter, or over four consecutive calendar quarters. On a busy renovation schedule, that can happen within your first few months.

You can also register voluntarily before you reach the threshold. If you do, the CRA notes you may need to stay registered for at least a year before cancelling. Whichever route you take, the rate you charge depends on the province where the work is done, and our GST/HST rates page lists the current rate for every province and territory.

Arrange workers' compensation and insurance

Tax registration covers what you owe the government. Workers' compensation and insurance cover what happens if someone is hurt or something goes wrong on site, and in construction these are often requirements rather than options.

Each province has its own workers' compensation board with its own rules. Ontario is a useful example because its rules are strict. WSIB's construction coverage FAQ states that people who own or run a construction business, with or without employees, must have coverage. There's an exemption for owners who only do home renovation work and are hired and paid directly by the homeowner or resident. Take on even one contract that isn't a home renovation and the exemption no longer applies.

WSIB also requires principals to get a clearance from contractors before construction work begins, so a general contractor may refuse you on site without one. If you plan to subcontract, sort out your coverage first. Separately, talk to an insurance broker about commercial general liability and coverage for your tools and vehicle. Many customers and general contractors will ask for proof before you start.

Check licensing and permits

Insurance protects the business. Licensing determines which work you're allowed to do in the first place. Trades such as electrical, plumbing and gas fitting are typically regulated, which usually means a provincial licence or certificate of qualification. Other work, like painting or flooring, often isn't, though the rules vary by province.

Permits are the other half. Many municipalities require a building permit for structural, electrical or plumbing changes, and some require a local business licence for contractors. Check with your provincial trade regulator and your city's building department before your first job, rather than after an inspector asks.

A launch checklist for the first 30 days

Those requirements are easier to manage as a list than as a set of separate tasks. Here's the sequence we recommend for a new construction business, in the order the steps usually depend on each other.

Step	Where	Done when
Define your trade and customers	Your plan	You can describe your work in one sentence
Choose a structure	Your accountant	Sole proprietor or corporation decided
Register your business name	Provincial registry	Registration confirmed
Get a business number	CRA	BN issued
Decide on GST/HST	CRA	Registered, or threshold tracked
Workers' compensation	Provincial board	Coverage or exemption confirmed
Liability insurance	Your broker	Certificate in hand
Licence and permits	Regulator and city	Requirements checked for your work
Business bank account	Your bank	Personal and business money separated
Quote, invoice and payment setup	Your app	First quote ready to send

Most of these take an afternoon each. The ones that can take longer are licensing, where a certificate may require exams, and insurance, where a broker may need a few days to quote. Start those first.

Set up how you'll quote, invoice and get paid

With the registrations done, the last step is the one customers actually see. Your first quotes and invoices set expectations about how you work, so decide on a few things before the first enquiry arrives.

Build a price list from your real costs, meaning materials, your target hourly rate, insurance, vehicle and tools, plus the unpaid hours spent quoting and invoicing. Show labour and materials as separate lines on every quote. Decide your deposit terms in advance, too; our guide on how contractor deposits work covers how to size one and what Ontario's guidance says about them.

Finally, keep business communication separate from personal from the start. A dedicated business number means customers don't have your personal cell, and you're not untangling work texts from family ones a year from now. Once jobs are coming in, our guide to asking for payment politely covers what to say at each stage of collecting.

How StrikeHoney gets a new construction business running

That last step is where we built StrikeHoney to help. It runs on your phone, installs from the browser, and covers the business side of the checklist from your first quote onward.

• Set up in minutes. Pick your trade, and your services and quote templates are already in place, so your first quote doesn't start from a blank page.
• A business number from day one. Your own business phone number is included. Calls and texts come into the app and are saved against the right customer, and your personal number stays private.
• Bring your contacts. If you've already done some work, import your customer list from a CSV file and every customer is searchable by name or phone number.
• Tax handled by province. Quotes and invoices are GST/HST-aware, with the right rate applied by province and a tax report when you need the numbers.
• Deposits from the first job. Customers open the quote from a link with no account or app, approve it and pay the deposit in the same tap. The deposit is credited to the final invoice automatically.

There's no setup fee and no tiered plan to choose between when you're just getting started. Everything above sits on one plan, at $24/mo CAD, or $19/mo CAD for a year paid up front.

The bottom line

Knowing how to start a construction business in Canada is mostly a matter of order. Define your work, choose a structure, get your business number, handle GST/HST and workers' compensation, confirm your licensing, and set up how you'll quote and get paid. Done in the first month, those steps mean your first customer deals with a business that's ready for them.

To see everything included when you set up StrikeHoney for a new business, visit our pricing page.