Food and drink Home-basedSide hustleCreative

How to start a home bakery business in Ontario

Everything you need: what it costs, what you can make, what Ontario asks for, and every step from your first idea to your tenth customer.

Start this business with PressUp

Checked October 2026 In Canadian dollars 12-minute read

The prices and costs in this guide are estimates for Canada: researched US figures converted to Canadian dollars by price levels. Registration fees and taxes are Canada's own.

To startCA$928–3kLean to full setup

Per monthCA$2.4k–7.2kOnce established

Profit margin60–70%After ingredients, packaging and card fees

First customer1–8 weeksFrom today

DifficultyLearn the rules, then it's baking

From homeYesOr you go to them

01Is it right for you?

A good fit if you love baking and want to start from home

Many places let you sell baked goods made in your home kitchen, so you can start without renting a commercial kitchen. Begin with orders from friends and neighbors, then grow into custom cakes, markets and holiday rushes. What you may sell, and where, depends on the rules in Ontario.

You'll like it if

You already bake for friends and family
You want to start from home with little money
You enjoy decorating and creative orders
You're organized with orders and deadlines

Think twice if

You want to sell foods that need a fridge, like cheesecake
You can't give up evenings before weekends and holidays
Long hours on your feet in a warm kitchen are hard for you
You want to sell to stores and cafes right away

02What it costs

From CA$928 to start

Start lean with the essentials and upgrade as customers come, or set up fully from day one.

Total to startCA$928

What	Cost
Mixer, pans and decorating toolsA stand mixer, sheet pans, a scale, racks and piping tools	CA$420
Second ovenA countertop convection oven for busy weeks	CA$0
Boxes and labelsCake and cupcake boxes, labels and a label printer	CA$70
Registering your businessFree as a sole trader; more to form a company	CA$60
Food permit and trainingA food handler course, plus registration or inspection where required	CA$18
Product liability insuranceFirst year	CA$360
Total	CA$928

Once you're running: about CA$50 a month, plus about 33% of what you earn. Insurance and your permit renewal spread over the year, plus ingredients, packaging and card fees for each order.

03What you can make

Work out your own numbers

Move the sliders to match your plans. The chart shows a first year that builds up as word gets around.

Average price per order CA$60 CA$15CA$380

Orders a week 10 140

Monthly costs CA$50 CA$0CA$200

Typical in Ontario: CA$30–CA$190 per order, 3–20 orders a week once established.

Revenue a month—

Profit a month—

Pays back in—

Your first yearTotal: —

Money inCosts

Side hustleCA$480–1.5k

3–8 orders a week

Full-time, on your ownCA$2.4k–4.3k

15–25 orders a week, plus markets

GrowingCA$4.8k–7.2k

A rented kitchen, a helper or wholesale

04Step by step

12 steps to your first customers

Each step says what it costs and how long it takes. Most owners get through them in a few weeks.

1
Learn the home food rules
1–2 days Free

Before you bake to sell, read the rules where you live. They say which foods you may sell from home, where you may sell them, how to label them, and whether you need to register.
- Foods you may sell
- Where and how you may sell
- Label wording and any sales limit
2
Choose your name
1 day Free

Pick a name that's warm and easy to remember. Make sure no one in Ontario has it.
- 3–5 name ideas
- Check no one else uses it
- Check the domain
Get name ideas for your businessFind a name
3
Register your business in Ontario
1 day to 2 weeks CA$60–CA$300

Most owners start as a sole proprietor and register a business name with their province; incorporating costs more and keeps business debts separate.
- Register a business name: CA$60
- Incorporate in Ontario: CA$300
4
Get your Business Number (BN)
1–5 days Free

Your business's tax number from Canada Revenue Agency, for taxes and banking.
- Register with Canada Revenue Agency
- Open a business bank account
5
Get your food permit and training
1 day to 2 months Up to CA$650

Some places need nothing more. Others ask for a food safety course, a registration, or an inspection of your home kitchen, which can take weeks. Apply early.
- Food handler course
- Registration or permit
- Kitchen inspection, if required
6
Sort out HST
1–3 days Free

You must register for HST once your sales pass CA$30,000 a year. The rate is 13%.
- Know when to register for GST/HST
- Keep records of income and costs
- Set money aside for income tax
7
Get insured
1–2 days Quotes are free

Insurance protects you if something goes wrong on a job. Get quotes from two or three insurers.
- Product liability
- General liability
8
Equip your kitchen
1 week CA$480–1.5k

You probably own most of what you need. Add a good mixer, more pans, boxes and labels; a second oven can wait until you're busy.
- Stand mixer and pans
- Boxes and labels
- Decorating tools
9
Set your prices
1 day Free

Price each item from its ingredients, packaging and your time, not just what the store charges. See the prices below.
- Cost out every recipe
- A small, focused menu
- A notice period for custom orders
10
Put your business online
1 day Included

A site with your menu, photos, pickup times and an order form saves you hours of messages.
- Website with your menu
- Order form
- Google Business Profile
Describe your business and PressUp builds your websiteBuild your website
11
Get your first 10 customers
1–3 weeks Free

Friends, coworkers and neighbors first, then local groups, a market table and reviews.
- Photos of your best bakes
- Neighborhood groups
- Ask every customer for a review
Ask your customers for reviews by email with PressUpSee how
12
Keep track as you grow
Ongoing Included

Know who ordered what, when it's due, and who's coming back for the next birthday.
- Customer list
- Order dates
- Repeat orders
Keep your customers and invoices in one place with PressUpSee how

05Licenses in ON

What Ontario asks for

Registering, taxes, and what this business needs. Check the details with each authority: rules change.

Register a business name

Renew every five years, for the same fee.

ServiceOntario (Ontario Business Registry)CA$60once

Incorporate in Ontario

A named company also needs an Ontario NUANS name report from a private provider.

ServiceOntario (Ontario Business Registry)CA$300once

Business Number (BN)

Your business's tax number, for banking and taxes.

Canada Revenue AgencyFree

Food labels

Label what you sell with its name, ingredients and allergens. Many places also want a line saying it was made in a home kitchen.

Your food safety authorityVaries

Tell your public health unit

Rules differ by province. In Ontario, home bakers selling low-risk foods tell their local public health unit before they start, and can be inspected.

Your provincial or local public health authorityVaries

06Equipment

What to buy first

Buy the "must haves" to start. Add the rest when customers pay for them.

Stand mixer4.5 to 5 quart

CA$330–CA$450Must have

Half sheet pansFour to start, or a case of twelve

CA$40–CA$65Must have

Digital scaleWeigh, don't scoop, for the same bake every time

CA$19–CA$45Must have

Cooling racksTwo or more

CA$13–CA$40Must have

Turntable and piping toolsFor cakes and cupcakes

CA$18–CA$120Must have

Bakery boxesA hundred, plain or with a window

CA$45–CA$130Must have

Food labelsA roll of 500

CA$12–CA$15Must have

Label printerPrints ingredient labels in seconds

CA$150–CA$210Later

Countertop convection ovenA second oven for busy weeks

CA$270–CA$420Later

07Pricing

3 packages that sell

Simple choices make it easy to say yes. Most customers pick the middle one.

Sourdough loaf

CA$14 per item · Baked fresh for pickup

Long, slow ferment
Plain or flavored
Order by midweek

Dozen cupcakes

CA$40 per item · Order a few days ahead

Twelve frosted cupcakes
Your choice of flavor
Boxed and labeled

Celebration cake

CA$110 per item · Order two weeks ahead

Layered cake
Custom colors and message
Boxed for pickup

Custom celebration cake prices in OntarioTypical: CA$55–CA$190

Average CA$110

CA$0CA$65CA$130CA$190CA$250

08First customers

How to get your first customers

You don't need an ad budget. These work for new owners almost everywhere.

Farmers markets

A market table puts your bakes in front of hundreds of people each weekend.

Low cost

Photos on social media

Bakes sell on looks. Post every order, with a link to order.

Free

Neighborhood groups

Nextdoor and local Facebook groups bring your first orders.

Free

Order online

A site with your menu, order form and pickup times saves you hours of messages.

With a PressUp website

Reviews

Ask every customer. Good reviews make custom cake orders much easier to win.

With PressUp Reviews

Holidays and birthdays

Take preorders before holidays, and remind past customers before birthdays.

Repeat income

09Your first 30 days

A month from now, you could be open

Week 1

Learn the rules

Read Ontario's home food rules
Take a food handler course
Design your label

Week 2

Set up

Choose your name
Register your business
Get insurance quotes

Week 3

Go live

Website with your menu
Photos of your best bakes
Set your prices

Week 4

First customers

Aim for 10 orders
Ask for reviews
Book a market table

10Questions

Common questions

Can I sell baked goods from home in Ontario?

In many places, yes, within limits. US states each set their own cottage food rules, and other countries ask you to register your home kitchen as a food business. Check Ontario's rules before your first sale.

Which bakes are usually allowed?

Breads, cookies, cakes and other baked goods that keep at room temperature are the most widely allowed. Cheesecake, cream fillings and custards usually aren't, because they need a fridge.

Can I sell online or ship?

It depends on where you live. Some US states allow website and mail orders, some ask you to deliver online orders yourself, and a few don't allow online sales at all.

Is there a limit on how much I can sell?

Some places cap yearly sales from a home kitchen, and the limits differ widely. If you outgrow yours, renting a commercial kitchen is the usual next step.

Do I need insurance?

It's often not required, but product liability insurance protects you if a customer gets sick or has an allergic reaction. Some markets ask for it.

Costs and earnings are estimates from the sources below, checked October 2026. Fees and rules change: confirm with the authorities named in this guide. This guide is general information, not legal, tax or financial advice.

Sources