SMALL BUSINESS

What form of Business are you operating?

  1. Corporation
  2. Partnership
  3. Sole Proprietorship

Proprietor and Partnership file taxes using T2125 – Statement of Business Activities. Income is reported on T1

 Corporation uses T2 return – a corporation is separate legal entity from its owner or owners and files a separate tax return.

Statement of business Activities

This statement reports the income and expenses of the business for the Calendar year or fiscal year.

Some deductible expense includes

Advertising

Meals and Entertainment

Insurance

Interest

Motor vehicle expense

Salaries and wages  

Repairs and Maintenance

Home office expenses

Etc