Sole proprietorships and partnerships
Self-employment income is reported on line 135 to line 143 of your income tax and benefit return. This income 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 information for sole proprietorships or partnerships involved in unique types of business operations. See Farmers and fishers, or Daycare in your home if your business involves these activities. If your income is from a property, see Rental income. If you sell lottery tickets, see Lottery prize commissions.
If your business is incorporated, see Corporations.
Self-employed Canadians can now register to be eligible to receive Employment Insurance special benefits, which include maternity, parental, sickness and compassionate care benefits. For more information on eligibility and application, visit Service Canada .
- What is a business?
Definition of a business and when does it start.
- Business expenses
Common business expenses.
- Report business or professional income and expenses
Calculate and report your business income using Form T2125.
- Investment tax credit
Information on the investment tax credit, the apprenticeship job creation tax credit, and the investment tax credit for child care spaces.
- Partnership and information return filing requirements
Reporting income, losses, GST/HST rebate, completing the partnership information return, capital cost allowance and eligible capital expenditure.
- Accounting methods
Accrual or cash method.
- Fiscal period
Choosing your fiscal period.
- Business records
Your obligations for keeping records of your business activities.
Due dates for filing your returns and making your payments. Establishing a fiscal year-end and calculating instalment payments.
Forms and publications
- Guide T4002, Business and Professional Income
- Form T2125, Statement of Business or Professional Activities
- Form RC59, Business Consent Form
- Authorizing a business representative
- Contact person
- Daycare in your home
- Farmers and fishers
- Instalment payments
- Rental income
- Service Canada
- Making payments for individuals
- Tax Shelters
- Video series: Reporting Business Income and Expenses
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