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Straight answers
The questions people ask most about starting and running a home renovation business in Ontario. Answered straight, with links to the official sources.
It's the most accessible construction business — low barrier, immediate demand, you can start solo. That accessibility is also the problem: it's crowded, and the most common failure is underpricing and poor client management, not bad workmanship. The renovators who thrive treat contracts, change orders, and pricing as seriously as the tile work.
No provincial renovation licence — but you typically need a municipal business licence, building permits for structural/electrical/plumbing/HVAC work, and certified trades for any compulsory scope. Purely cosmetic work needs no permit. If a renovation creates a new dwelling unit, HCRA licensing can apply.
Scope creep is the silent margin killer of renovation. The defence is a detailed written contract, allowances for the unknowns, and signed change orders for every addition — no "while you're here" handshake adds. Renovation is half construction and half managing expectations in someone's home; the documentation is what keeps the relationship (and your margin) intact.
Structure payment so you're never financing the customer: a deposit, progress draws tied to milestones, and a final payment that isn't your only profit. Invoice in line with the Construction Act's prompt-payment rules, document changes, and understand your lien rights. The classic reno disaster is finishing the job and then chasing a customer who suddenly has "concerns" about the last 10%.
Handyman work is the fastest cash and the lowest barrier, but it caps out and builds no real asset. Full renovations — especially kitchens, baths, and basements — are where the value and the business are. Many start with smaller jobs to build a reputation and reviews, then move up to larger renovations as referrals and confidence grow.
Solo keeps overhead low and margins on your own labour high, but you're the ceiling — income stops when you do. Building a crew (and a sub roster) turns you from a tradesperson into a business owner: you sell and manage while others build. It's more headache and more reward, and it's the only path to something you can eventually sell.
Not a provincial trade licence for general renovation work. You typically need a municipal business licence, building permits for structural/electrical/plumbing/HVAC scopes, and certified trades for any compulsory work. If your renovation effectively creates a new dwelling, HCRA licensing may apply.
It is one of the cheaper construction businesses to launch: ~$400–$600 to incorporate, a municipal business licence, $1,500–$3,000/year for $2M CGL, plus WSIB. Tools and a truck are usually the real startup cost. You can start solo and subcontract trades you are not certified in.
You need a building permit for structural changes, additions, new plumbing or electrical, HVAC changes, decks above a certain height, and finishing a basement into living space. Purely cosmetic work — painting, flooring, trim, cabinets, tiling — generally does not require a permit. Always confirm with the local building department.
A homeowner can do electrical work in their own home with an ESA permit, but as a paid contractor you must be a certified electrician working under a licensed electrical contractor (ECRA/ESA). Renovators without that ticket subcontract electrical to a licensed electrical contractor.
Many start as sole proprietors, but incorporating limits personal liability (valuable when working in clients' homes), can reduce tax once you are profitable, and looks more credible to larger clients. Incorporation in Ontario runs roughly $400–$600 plus a registered office address.
A sole proprietorship is cheaper and simpler to start, but you are personally liable for the business's debts and claims. Incorporating creates a separate legal entity that limits personal liability, can reduce tax once you are profitable, and reads as more credible to larger clients. Most contractors incorporate once they have employees, real revenue, or work on others' property.
Yes — construction is a mandatory WSIB sector in Ontario. Even independent operators and partners with no employees generally must register, and clients and general contractors will require a valid WSIB clearance certificate before you can work on their site.
You must register for and charge HST once your revenue exceeds $30,000 over four consecutive quarters. Many contractors register before that threshold so they can claim input tax credits on tools, materials, and vehicles from day one.
Ontario's Construction Act sets the rules: a 10% holdback on most contracts, prompt-payment timelines (you must be paid within set periods after a proper invoice), and an adjudication process for disputes. Understanding holdback, lien rights, and prompt payment is essential to protecting your cash flow.