What form of Business are you operating?
- Corporation
- Partnership
- 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