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Tickle & Compass

Business tip

Your corporation's yearly checklist

A corporation has to keep filing after the setup is done. Here's the recurring list.

Corporate tax return

The T2 is due six months after year-end.

Every corporation files a T2, even if it earned nothing, and CRA charges penalties for filing late.

Paying the tax

Usually due

Two months after year-end for most corporations.

For many small corporations

Three months after year-end if it's a Canadian-controlled private corporation that qualifies for the small business deduction. Confirm which applies to you.

Provincial

File the annual return.

Each province has its own annual return for corporations, with a fee. Missing it can put the corporation's status at risk.

Records

Keep the corporate paperwork current.

Update the minute book with director and shareholder decisions, dividends declared, and share changes. Financial statements support the tax return.

If you pay yourself

Slips and remittances.

Salary means payroll remittances and T4 slips. Dividends mean T5 slips. Both have deadlines.

Watch out

Shareholder loans have a clock.

Money you borrow from your corporation generally has to be repaid within one year after the end of the corporation's tax year in which you took it, or it gets added to your personal income. Some exceptions apply.

Tickle & Compass

Save this, then look at paying yourself.

Salary or dividends? →

General information, not tax, legal, or financial advice. Rules vary by province and change — confirm with an accountant.

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