Table of Contents

1. How to prepare for tax season
2. CRA forms you need to complete 
3. Filing small business and personal taxes together 
4. Best ways to file taxes with ease
5. Filing your sales taxes
6. Streamline tax preparation and filing
7. Small business taxes: FAQ

Whether you are self-employed or own a small business, you're responsible for filing your taxes. With all the rules and regulations surrounding this subject, you may want some guidance on how to file your taxes in Canada.

Here's what you need to know to make preparing and filing your small business tax return as easy as possible this tax season.

How to prepare for tax season

On top of all the records you need to prepare for tax time, you also need to know which tax credits you can claim and which expenses you can deduct. If your books are a mess as tax season approaches, QuickBooks can streamline the task of organizing your financial records, maximizing deductions, and ensuring you claim the right tax credits.

You are responsible for compiling and filing your taxes before the government deadlines. Your deadline will vary based on whether your business is incorporated or you're self-employed.

If you're self-employed, June 15, 2025, is the deadline to file your taxes. Since June 15 falls on a Sunday this year, you have until June 16, 2025.

If you run an incorporated business, you have up to six months after your fiscal year to file your taxes. For example, if your corporation's tax year ends in March, you will need to file by September.

Documents you need to file for small business taxes

There are many different accounting documents and business records you must collect during tax time. Whether you're filing by yourself or with an accountant, it's helpful to have your documents organized and ready to go.

Examples of some of these documents include:

• Payroll information
• Registered Retirement Savings Plan (RRSP) contributions
• Work-related expenses
• Financial statements
• Invoices
• Receipts
• Cheques
• Bank and credit card statements
• Previous tax returns

CRA forms you need to complete 

Once you’ve collected all applicable financial information and records, you need to fill out the appropriate Canada Revenue Agency (CRA) forms for your business. The forms you need to file will depend upon your business structure.

T2 Corporation Income Form

If your business is incorporated, you have to file specific forms with your returns.

The T2 form serves as a federal, provincial, and territorial income tax return for corporations in Canada.

However, if your business is in Alberta or Quebec, you must file a separate provincial corporation return. All residential corporations must file a T2 return every tax year, even when there's no tax payable. The only exemptions include registered charities, Crown corporations, and Hutterite colonies.

You can file your T2 form electronically — in most cases, the CRA mandates electronic filing. To do so, you must use CRA-certified software. Once the form is complete, you can submit your tax files online or print and submit them by mail. Keep in mind that T2s are due up to six months after the business's fiscal year.

Self-Employed Form T4A and T2125

Self-employed individuals and contractors must fill out T4A and T2125 forms when filing taxes. The T4A slip, also known as the Statement of Pension, Retirement, Annuity, and Other Income, allows contractors or freelancers to keep track of how much they earned from each client throughout the year.   

Form T2125, also known as the Statement of Business or Professional Activities, helps individuals calculate their gross income and business expenses to lower their taxable income. 

Filing small business and personal taxes together

The ability to file your business taxes alongside your personal taxes will depend on the structure of your business.

If you operate a corporation, you must file your corporate taxes separately from your personal taxes.

If you run a sole proprietorship or partnership, you must report your business taxes on your personal income tax returns.

Best ways to file taxes with ease

Previously, individuals and businesses had to fill out all their tax information by hand. Today, many individuals use software to complete their taxes, making the entire process easier and minimizing the risk of human error.

There are typically three main options to choose from when filing your taxes. These include using tax software and submitting your taxes online, using software and filing through the mail, or using a professional service to file taxes on your behalf.

File with tax software

The CRA must certify the tax software you use to file your taxes. If you use software that isn't approved, you might not file your taxes properly, which can lead to unwanted penalties. Software can also simplify tax management with automatic expense categorization, deductible identification, and tax credit guidance, ensuring accurate and optimized tax filing.

File taxes online

Once your taxes are complete, you'll have the option to submit your files online through various CRA digital services.

Business owners who file GST/HST, payroll, and corporation income taxes can use the My Business Account portal. Those who report their business income on a personal income tax return can do so with the My Account portal.

Use NETFILE

NETFILE is another electronic service that allows individuals to file their taxes online. It's a transmission service that allows eligible Canadians to file their personal income taxes online directly to the CRA. To use NETFILE, you must first have NETFILE-certified tax software.

Submitting taxes this way will simplify the filing process, as it allows you to file directly through the software. Filing through NETFILE also means you'll have immediate confirmation when the CRA receives your taxes.

You won’t have to submit your receipts (unless the CRA specifically asks for them later). If you're eligible for a refund after your return has been reviewed, you can receive your refund faster by direct deposit into your account.

File taxes by mail

If you opt to submit your taxes through the mail instead of online, you'll need the tax centre mailing address to send your income tax and benefit returns to the CRA.

First, you'll need to print out and fill in all forms. Make sure to look over your full return to ensure it's complete and correct before mailing it.

For extra safety, you can apply insurance and tracking services to your package before sending it off.

It typically takes four to six weeks for the CRA to process a tax return sent by mail.

Filing your sales taxes 

As a small business owner, you're responsible for filing your income tax returns as well as your GST/HST tax returns. If your business makes more than $30,000 in four consecutive calendar quarters, you'll need to charge and collect sales tax on your customer transactions. What you collect will differ based on the products sold and where you're located in Canada.

Once you’ve collected your sales tax for an accounting period, you'll need to send this money to the CRA. Depending on your filing periods, you'll need to file sales taxes monthly, quarterly, or annually. To help you prepare your sales taxes and determine if you need to file online or through the mail, the CRA recommends using the GST/HST Return Working Copy.

Filing your sales tax returns online 

Like with income returns, there are various options for individuals and businesses to file their sales tax returns online.

GST/HST NETFILE and GST/HST TELEFILE allow you to file your sales tax returns directly online. These are the quickest and easiest options to use. The CRA My Business Account is also available for filing sales taxes, alongside other business-related taxes.

You can also pay your net tax owed electronically through your Canadian financial institution using the Electronic Data Interchange (EDI) option. However, those in Quebec will be unable to use this electronic service.

Other internet-based filing services include the GST/HST Internet File Transfer, which allows small business owners to pay their sales taxes to the CRA directly through third-party accounting software.

Filing your sales tax returns by mail 

If you determine you don't need to file your sales tax online, you can file a paper return with the CRA. Eligible individuals can either send the GST/HST return through the mail using form GST34-2 or file in person at their Canadian financial institution.

Note that you can't file your sales return in person at a financial institution if you're claiming a refund, filing a nil return, or opting to offset the owing amount on your return with a rebate or refund.

Professional accounting help to file your business taxes 

If you find filing your business taxes complicated, you might choose to hire a professional accountant or bookkeeper to help you out. If you work with an accountant, they can handle all your returns and file them online through the CRA portal called Represent a Client.

If you decide to file your own returns, the CRA dictates that you hold onto all your tax documents for at least six years. Keeping organized tax files is a significant part of any business's or individual’s tax management.

Streamline tax preparation and filing

As a business owner, you have a lot to do — and tax time means you may have even more tasks to fit into your day. To help streamline your tax preparation and filing process, check out QuickBooks Online.