Corporate Tax Return Frequently Asked Questions

You can register a corporation quickly and easily online using services like Ownr.co or through the government registry.

Steps:

1. Choose a corporate name – Pick a unique name or use a numbered corporation.

2. Decide federal or provincial incorporation – Federal allows operation across Canada; provincial is limited to one province. If you register on Federal level, you will still need to register in the Province you will operate. Having both registration types implies filing on both levels.

3. Prepare Articles of Incorporation – Outline your corporation’s structure (directors, share classes, etc.).

4. File online – Platforms like Ownr.co submit your incorporation documents to the federal or provincial registry.

5. Obtain a Business Number (BN) – Required by the CRA to manage taxes.

6. Register for tax accounts – GST/HST, payroll, or corporate income tax, if applicable.

All incorporated businesses must file a T2 Corporate Tax Return each year, even if there is no income, and is inactive.

Bank statements, invoices, receipts, payroll records, and any agreements for loans, leases, or assets purchased/sold during the year. These documents are requested on a regular basis as part of bookkeeping.

Corporate returns are due six months after the end of the corporation’s fiscal year. Any balance owing must be paid within two or three months of year-end, depending on the corporation’s status.

CRA charges penalties starting at 5% of unpaid tax plus 1% per month late, up to 12 months. Interest is also added.

Yes, we provide strategies for tax efficiency, dividend vs. salary planning, GST/HST compliance.

Yes, non-capital losses can generally be carried back 3 years or carried forward up to 20 years to offset taxable income.

Common deductions include salaries, rent, utilities, business insurance, vehicle expenses, professional fees, advertising, and depreciation (CCA) of assets.