By Advantage Tax Solutions · Updated October 22, 2026

“Business taxes” can describe two different filing situations. Before choosing a package, identify whether you operate personally as a sole proprietor or through an incorporated company. That distinction affects the return being prepared and the records we ask you to gather.

A sole proprietor reports business income personally

A sole proprietorship is an unincorporated business owned by one individual. The CRA explains that its income or loss is reported through the owner’s personal T1 income tax return. Business or professional income and expenses are commonly reported using Form T2125; different forms can apply to activities such as farming or fishing.

A registered business name does not, on its own, make a business a corporation. Check your registration or incorporation documents if you are uncertain. The CRA’s sole-proprietorship overview and T2125 information explain the basic reporting approach.

An incorporated business has a corporate return

A corporation has a separate income tax filing process. Canadian-resident corporations generally file a T2 return for each tax year, including inactive corporations and those with no tax payable, subject to limited exceptions. The CRA’s corporation income tax overview explains who must file.

The corporate return does not replace the shareholder’s own personal return. When discussing your file, tell us whether you need help with the corporation, your personal taxes, or both.

Choose the right starting point

GST/HST is a separate question

Tell us whether you have a GST/HST account and which reporting periods need attention. Do not assume an income tax engagement automatically includes every other business filing. We confirm the scope before paid work begins; see our GST/HST service page for the starting process.

How our fees reflect the difference

Our self-employed package starts at $185 before applicable sales tax for one person, one sole proprietorship and one tax year, including one GST/HST return for that business if required. It does not include corporate T2 filing. Corporate work is quoted separately after we understand the corporation, its records and the required work. Current details are on the fees page.

Not sure which one applies?

For your first call, have your business registration or incorporation details and a description of how you operate. Explain who invoices customers, which account receives the money and whether the business changed during the year. We can then identify the next records to request.

This guide helps you choose a filing service. A decision about whether to incorporate needs a separate review of your circumstances. If you want to explore that decision, ask about the scope of a tax-planning review.

General information, based on the official CRA sources linked above. Requirements can change, and your corporation or personal circumstances determine the advice and filings you need.