Corporate and Business Tax

Professional Tax Filing and Corporate and Business Tax Compliance services for Small Businesses, Corporations, and Professionals in Toronto, Scarborough, Markham, Ajax, Pickering, Whitby, Oshawa, Bowmanville, York, Mississauga, Brampton, Oakville, Hamilton and across Ontario.

Running a business in Canada comes with more than day-to-day operations—it also comes with complex tax obligations. Whether you’re operating a small business, a professional corporation, or a growing enterprise, accurate and timely corporate tax filing is not optional—it’s a legal requirement.

Small business accountants in our accounting firm provide comprehensive corporate and business tax services to help you file with confidence, minimize your tax liability, and stay fully compliant with the Canada Revenue Agency (CRA). From bookkeeping to GST/HST returns to  T2 corporate tax returns to year-end financials and basic tax planning, we support small businesses and professionals across Ontario and Canada with expert guidance and personalized service.

Who Needs to File a Corporate Tax Return?

You must file a T2 Corporate Income Tax Return if:

  • You operate a Canadian-controlled private corporation (CCPC)
  • You’re a professional corporation (e.g., lawyer, doctor, dentist, veterinarian, chiropractor, optometrist, engineer, architect)
  • Your business is incorporated federally or provincially
  • You have active business income or passive investment income
  • Your business earns more than $30,000/year and may be required to collect and remit GST/HST

Even if your corporation is inactive or has no income, you are still required to file an annual T2 return.

Source: CRA – Who needs to file a T2 Corporation Income Tax Return?

Our Corporate Tax Services

We provide end-to-end support tailored to your business size, industry, and structure:

  • Preparation and filing of T2 Corporate Tax Return
  • Preparation of Compilation Engagement Report with financial statements
  • Basic Tax planning strategies to minimize corporate and personal taxes
  • Advice on salary vs. dividends for owner-managers
  • GST/HST registration, filings, and input tax credit (ITC) management
  • Tax installment tracking and optimization
  • CRA audit support and correspondence
  • Filing of T4s and T5s for employees and shareholders
  • Tax filings for multiple provinces (if applicable)
  • Year-end adjusting entries and reconciliations

Frequently Asked Questions (FAQs)

1. Do I need to file a T2 return if my corporation had no income?

Yes. Even inactive corporations must file an annual T2 corporate tax return with the CRA, regardless of income level.

2. What’s the difference between the small business rate and the general tax rate?

The small business deduction allows eligible CCPCs to pay a lower tax rate (12.2%) on the first $500,000 of active business income. Income above this threshold is taxed at the general rate (26.5%).

3. Can I deduct my salary or dividends from business income?

Salaries are deductible; dividends are not. We help you plan the most tax-efficient mix based on your personal and corporate situation.

4. How do corporate taxes differ for professional corporations?

Professional corporations follow the same T2 rules but have unique regulatory requirements, such as naming conventions and shareholder restrictions. 

5. What happens if I miss the filing deadline?

You may incur penalties, interest, and possibly lose your small business deduction. We can help you file late returns and liaise with the CRA to reduce potential penalties.

Self-Employed Business Tax Services

Accounting and tax support for Self-Employed individuals and professionals in Toronto, Scarborough, Markham, Ajax, Pickering, Whitby, Oshawa, Bowmanville, York, Mississauga, Brampton, Oakville, Hamilton and across Ontario and Canada.  

What Is Self-Employed Business Tax?

If you earn income on your own — without being on an employer’s payroll — the CRA considers you self-employed. That means you’re responsible for reporting your business income and expenses, filing your own taxes, and making sure you’re following Canada’s tax rules for small businesses.

Self-employed individuals in Canada file a T1 Personal Income Tax Return, along with a T2125 – Statement of Business or Professional Activities, where you report your revenue, deduct business expenses, and calculate your net income.

Depending on your income level and location, you may also need to:

  • Register and file GST/HST returns
  • Pay CPP contributions on your self-employment income
  • Make installment payments to the CRA throughout the year

It can feel like a lot — but that’s where we come in. At MAQ CPA, we help self-employed individuals and professionals stay on top of their financial responsibilities and avoid surprises at tax time.

Who We Help i.e., Self-Employed Businesses and Professionals

We work with self-employed individuals and professionals across a wide range of industries, including trades, services, creative work, online business, and more. If you earn income independently, we’re here to support you.

We can serve self-employed professionals and businesses that include:

Trades & Skilled Labour

  • Electricians
  • Plumbers
  • Carpenters
  • HVAC technicians
  • Roofers
  • Painters & drywallers
  • General contractors
  • Landscapers & snow removal pros
  • Handypeople
  • Welders
  • Heavy equipment operators

Professional Services & Consultants

  • Business consultants
  • Marketing specialists
  • IT professionals & developers
  • Engineers
  • Architects
  • Life coaches & business coaches
  • Financial consultants (non-licensed)
  • Project managers

Creative Professionals

  • Graphic designers
  • Web designers & developers
  • Photographers & videographers
  • Writers, editors & translators
  • Musicians & performers
  • Actors & voiceover artists
  • Social media managers
  • Content creators & influencers

Personal Services

  • Hairstylists & barbers
  • Estheticians & lash technicians
  • Makeup artists
  • Massage therapists
  • Fitness trainers & yoga instructors
  • Pet groomers & dog walkers
  • Cleaners & organizers

Gig & Platform-Based Work

  • Uber, Lyft, and rideshare drivers
  • Food delivery (SkipTheDishes, DoorDash, Uber Eats)
  • Airbnb hosts
  • Task-based gig workers
  • Virtual assistants
  • Online tutors

E-Commerce & Online Business Owners

  • Amazon, Walmart and Etsy sellers
  • Shopify store owners
  • Dropshippers
  • Print-on-demand creators
  • Online course creators
  • Freelancers on Upwork, Fiverr, and other platforms

Whether you’re working part-time on the side, full-time in your own business, or trying to turn your hustle into your main source of income, we can help you manage the tax side of things.

Why Business Tax Matters

When you’re self-employed, you don’t get a T4 — and that means you’re responsible for tracking your own income, recording your expenses, and handling your own taxes.

Many self-employed Canadians are surprised to learn that:

  • You don’t get taxes withheld at the source — so you may owe more at tax time
  • You’re required to pay both the employer and employee portions of CPP
  • If you earn over $30,000 in a year, you need to register for GST/HST
  • You may need to pay tax instalments quarterly, not just once a year
  • You can legally deduct a wide range of business expenses — but only if you’re properly tracking them

Trying to figure this all out on your own can lead to missed deductions, costly mistakes, or even CRA penalties. Our business tax preparers are here to make sure that doesn’t happen.

How We Can Help Self-Employed Businesses and Professionals

We offer practical, reasonable support for self-employed Canadians who want to stay compliant, reduce stress, and get the most out of their hard work.

✅ Self-Employed Tax Filing

We prepare and file your T1 personal tax return, including your T2125 business income statement, ensuring everything is accurate and optimized for your unique business.

✅ Business Expense Tracking & Advice

We’ll help you understand which business expenses are deductible and how to track them properly — including home office use, vehicle expenses, supplies, tools, advertising, and more.

✅ Bookkeeping Services

Need help keeping your records in order? We offer simple bookkeeping solutions tailored to self-employed businesses of all sizes — whether it’s a spreadsheet setup or cloud-based software.

✅ GST/HST Registration & Filing

If your business earns more than $30,000 in gross revenue, you may need to register for GST/HST. We’ll walk you through registration, help you track what you owe, and file returns on your behalf.

✅ CRA Support & Representation

Got a letter from the CRA? No need to panic. We’ll help you understand what they’re asking for and respond appropriately — whether it’s a basic review or something more in-depth.

✅ Tax Planning & Year-Round Support

We’re here year-round to serve your needs. We’ll also explain CPP contributions, instalments, and how to save for taxes as you go.

Frequently Asked Questions (FAQs)

1. Do I have to register my self-employed business with the CRA?

Not necessarily. You don’t need to register a formal business with the CRA to report self-employed income — but you do need to report your earnings on your personal tax return using the T2125 form.

2. When do I have to register for GST/HST for my self-employed business in Ontario?

If your business earns more than $30,000 in gross revenue (before expenses) in four consecutive calendar quarters, you’re required to register for GST/HST. This applies to most service providers, freelancers, and online sellers.

3. What expenses can I write off as a self-employed person?

You can deduct reasonable business expenses that help you earn income. Common examples include:

  • Home office expenses
  • Internet and phone bills
  • Advertising and website costs
  • Tools, supplies, and equipment
  • Vehicle expenses (if used for work)
  • Business travel and meals (50%)
  • Accounting and legal fees

Just make sure to keep your receipts and records!

4. When are self-employed business taxes due?

Your personal tax return is due by April 30, but if you’re self-employed (or your spouse/partner is), you have until June 15 to file.
Important: If you owe taxes, the payment is still due by April 30 to avoid interest charges — even if you file later.

5. Do I have to make tax installments during the year?

Possibly. If you owed more than $3,000 in taxes ($1,800 in Quebec) in the previous year, the CRA may require you to pay taxes in installments throughout the year (typically March, June, September, and December).

6. How do I calculate CPP contributions if I’m self-employed?

Unlike employees, self-employed individuals pay both the employer and employee portions of CPP — that’s 11.9% (as of 2025) on net business income between the annual minimum and maximum limits.
Your CPP contributions are calculated as part of your T1 tax return. 

7. Can I still contribute to an RRSP or TFSA as self-employed?

Absolutely! Your RRSP contribution room is based on your net income from self-employment (just like employment income). And your TFSA contribution limit is the same regardless of how you earn your income.

8. What happens if my business gets audited by the CRA?

If the CRA reviews or audits your return, they may ask for receipts, logs, or explanations for your expenses. This can sound scary, but it’s manageable with good records.

9. Can I deduct my vehicle expenses if I use my car for work?

Yes, but only the business-use portion. You’ll need to track your mileage and keep records of expenses like gas, insurance, maintenance, and lease or financing costs.
 

10. I just started freelancing. Do I need to file a tax return for it?

Yes — if you earned any income from self-employment business, it needs to be reported in the year it was earned, even if it’s a small amount or just a side gig. It’s better to get organized early and file properly.

Why Choose Us for Corporate & Business Tax Services in Toronto?

✅ Licensed CPA firm with deep experience in corporate and business taxation

✅ Trusted by small businesses, startups, and professionals across Ontario and Canada

✅ Strategic planning to minimize tax and maximize retained earnings

✅ Full compliance with CRA regulations and audit standards

✅ Fast turnaround, transparent pricing, and responsive service

✅ Integration with bookkeeping and year-round advisory support

Let’s Take the Stress Out of your corporation and business taxes

You work hard to build your business — let us help you protect it. With professional support, friendly advice, and clear guidance, we’ll make sure your taxes are handled the right way.

📞 Book your free consultation today and find out how we can help you stay on track, save time, and feel confident about your business taxes.

📧 Email us: info@maqcpa.ca
📞 Call us: (416) 901-4126