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Starting a Snow Removal Business in Ontario

Starting a snow removal business in Ontario can be as simple as one truck and a list of driveways, or as big as a crew of loaders on commercial lots. Either way, there are a few provincial, federal and municipal rules to sort out before the first snowfall, plus the insurance your clients will ask about.

This checklist covers the Ontario specifics. For the general business side, see how to start a snow removal business.

General information only, not legal, tax or insurance advice. Confirm the details with your municipality, the CRA, WSIB, MTO, your accountant and your broker.

1. Choose a Structure and a Name

Decide whether you will operate as a sole proprietor, a partnership or a corporation. An accountant can explain the tax and liability differences. If you plan to trade under a name other than your own, check the Ontario Business Registry at ontario.ca for the current name registration rules.

2. Check Your Municipality's Licensing Rules

Some Ontario municipalities license snow plow contractors and others do not. The Municipal Act allows each municipality to decide which businesses need a licence. Examples:

  • Ottawa requires snow plow contractors to hold an annual business licence under By-law No. 2002-189, Schedule 4, for businesses clearing private property with mechanical equipment. Farmers and manual-only operators are exempt. Changes effective October 16, 2024 raised the minimum insurance from $1 million to $2 million and added rules on snow dumping and driveway markers. Licence plates must be displayed on each plow. See snow plow insurance in Ottawa.
  • Vaughan says snowplow contractors must have a licence to operate in the city. See snow plow insurance in Vaughan.
  • Mississauga and Brampton do not list snow plowing among their business licence categories.

If you work in more than one municipality, check each one. Rules change, so confirm with the licensing office before the season.

3. Understand HST Registration

Under the federal small supplier rule, registering for GST/HST is optional if your taxable sales do not exceed $30,000 over four consecutive calendar quarters. Once you go over that amount, you must register, and the timing depends on how you cross the threshold. A busy winter can push a new business over quickly, so talk to an accountant early.

4. Register With WSIB Before You Hire

WSIB says most Ontario businesses with employees must register, and you have 10 calendar days from the day you hire your first employee. Snow removal is not on WSIB's list of optional industries. Read WSIB for snow removal businesses in Ontario.

5. Sort Out Your Truck

Paid plowing is a use to disclose to your insurer or broker. Heavier trucks may need a CVOR, which applies to trucks over 4,500 kg registered gross weight or actual weight, and the personal use pickup exemption does not cover work done for compensation. Read Ontario commercial auto requirements for plow trucks.

6. Consider Salt Training

The Smart About Salt Council is a not-for-profit organization, incubated through a government and industry partnership, that certifies contractors, property owners and sites in salt management. The Council promotes certification as helping with insurance and as part of a due diligence defence. Those are the Council's claims, not guarantees, so ask your broker how insurers view it. See Smart About Salt certification.

7. Put Contracts in Writing

A written contract sets your service area, trigger depth or service level, pricing, and what happens with salt, damage and incidents. Common pricing models include per push, per event, seasonal and hourly. See per push vs seasonal contracts, how to price snow removal contracts and the snow removal contract template.

Ontario's Occupiers' Liability Act includes a 60 day notice rule for snow and ice injury claims that names snow contractors. Every new contractor should read the Ontario 60 day notice rule.

8. Start Keeping Records From Day One

Dated logs of when you arrived, what you cleared and what you applied are your best evidence if a slip and fall claim comes months later. See site logs and documentation and the snow log template.

9. Arrange Insurance Before You Sign

Most commercial clients will ask for a certificate of insurance before you start. Coverage new contractors commonly discuss with a broker includes general liability, slip and fall coverage, plow truck insurance and equipment insurance. See insurance for new snow removal businesses and snow plow insurance cost in Ontario.

Sources

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Frequently Asked Questions

Do I need a licence to plow snow in Ontario?

It depends on the municipality. Ottawa and Vaughan license snow plow contractors, while Mississauga and Brampton do not list it as a licence category. Check with each municipality you work in.

Do I have to charge HST on snow removal?

Registration is optional for small suppliers with taxable sales of $30,000 or less over four consecutive calendar quarters. Above that you must register. Ask an accountant about your situation.

Do I need WSIB if I work alone?

Coverage for independent operators outside construction is optional, but once you hire a worker you generally must register within 10 calendar days. See WSIB for snow removal.

What insurance do new snow removal businesses usually carry?

Coverage new contractors commonly discuss with a broker includes general liability with slip and fall coverage and auto coverage rated for plowing. A licensed broker can review your contracts and explain options.