Program · Federal
Sole Proprietorship
The simplest Canadian business structure. You and the business are the same legal and tax entity. All business income reports on your personal T1 via Form T2125.
Eligibility
- Any Canadian resident
- Any business activity
- No separate legal entity formed
Limits and rules
- You are personally liable for business debts and lawsuits
- Business income taxed at personal marginal rates
- Required to file T2125 with personal T1
- GST/HST registration required once revenue exceeds $30K in 4 consecutive calendar quarters