Sole proprietorships and partnerships

Important Notice
Under new Employment Insurance (EI) measures that come into effect in January 2010, if you are a self-employed person, as defined in these new measures, you will be able to voluntarily enter into an agreement with Service Canada to be eligible for EI special benefits. For more information about these new measures, go to Service Canada. If you enter into such an agreement, you will be required to calculate and pay EI premiums on your tax returns for the applicable years.

Self-employment income is reported on the T1 General return on line 135 to line 143 and may be earned from a business you operate yourself as a sole proprietorship or with someone else as a partnership.

The topics below contain information about business income (lines 135 and 162), professional income (lines 137 and 164), and commission income (lines 139 and 166).

There is specialized information for sole proprietorships or partnerships involved in unique types of business operations. See Farming, Fishers, or Daycare in your home if your business involves these activities. See Rental income if your income is from a property.

If your business is incorporated, see Corporations.

What's new for sole proprietorships and partnerships

My Payment is a new payment option that allows individuals and businesses to make payments online, using the Canada Revenue Agency’s Web site, from an account at a participating Canadian financial institution. For more information on this self-service option, go to My Payment.

Forms and publications

• Guide T4002, Business and Professional Income
• Form T2125, Statement of Business or Professional Activities
• RC59, Business Consent Form

Related topics

• Authorize a representative
• Tax payments
• Instalment payments
• Tax Shelters