Report sole proprietor business income
How do I report income as a sole proprietor?
A sole proprietor reports business income or loss through the personal T1 income-tax return. This differs from a corporation’s T2 return. The appropriate supporting form depends on the activity; business and professional income commonly uses T2125.
Where to begin
- Identify the business activity and its reporting form; farming and fishing have different forms.
- Prepare income and expense records and complete the applicable business statement with the T1 return.
- Check whether income-tax or self-employed pension-contribution instalments apply.
- Review GST/HST obligations separately from reporting business income.
Before you open the official service
- Type of business activity
- Income and expense records, retained privately
Keep your actual documents and account details off this website. Use the official service’s current checklist before applying.
What to check for your situation
Use the applicable tax-year instructions. This guide does not calculate your tax or establish whether a deduction is allowed.
Fees, processing times and document rules can change. This page helps you navigate; it does not confirm eligibility or replace the government’s instructions.
Forms and checklists
Official sources
Prepared by Active K Digital from the linked public guidance. Read our source approach.