As a sole proprietor or self-employed business owner, you are in charge of your own business. You will face additional taxes and reporting requirements, but you may also be eligible for certain business tax deductions. We assist hundreds of self-employed business owners complete their self-employed tax returns in Toronto.
As a sole proprietor, you are in charge of your own business and to complete your self-employed tax returns in Toronto. As far as the tax code is concerned, you and your business are a single entity. While this entails certain freedoms, it also creates added responsibilities. You will face additional taxes and reporting requirements, but you may also be eligible for certain business tax deductions.
Under current income tax legislation, the business fiscal year-end must be December 31. The self-employed income tax is due by April 30 following the December 31 year end, but the personal income tax return including the proprietorship has a filing deadline of June 15. Quarterly installments for income tax and Canada Pension Plan may be required for the proprietorship.
As a sole proprietor, your self-employed income tax return in Toronto must include financial statements of one or more of the following applicable forms:
Form T2125, Statement of Business Activities
