Sell your business in Ontario

Most sales close 6 to 10 months after going to market, typically following up to a year of preparation. Sales that need consents from a landlord, lender or licensing body can take longer. How long a sale takes

In a share sale of a qualifying small business corporation, each owner can exempt up to $1,275,000 of capital gains in 2026 under the lifetime capital gains exemption. Gains above that are taxed at a top combined federal and Ontario rate of about 26.76 percent, including the Ontario surtax. Taxes when you sell

In an asset sale, HST at 13 percent applies to the taxable assets unless the buyer acquires substantially all of the business and both parties file the election on Form GST44. A share sale carries no HST on the shares. Share sale or asset sale

It applies when land or buildings are transferred to the buyer, at rates from 0.5 to 2 percent on commercial property. A $1.5 million commercial building carries $26,475 in provincial tax, and Toronto adds its own municipal land transfer tax. Keeping the real estate

Under section 9 of the Employment Standards Act, 2000, employment is deemed not to have been terminated by the sale, and service with the seller counts as service with the buyer. The rule does not apply where the buyer hires an employee more than 13 weeks after their last day with the seller. What happens to your employees

A buyer can be held liable for the seller’s unpaid WSIB premiums unless it obtains a purchase certificate before the date of sale. The certificate is valid for 30 days from issue, and a seller with several WSIB accounts needs one for each.

Yes. Ontario’s ban on employee non-compete agreements does not reach a covenant given by a seller on the sale of a business, and the Act makes an express exception where the seller becomes the buyer’s employee immediately after the sale. Non-competes when you sell