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Business tax software has to be certified by the CRA before it can send your return, and for a corporation that’s rarely optional: most corporations must file their T2 electronically, and the CRA can charge a $1,000 penalty if one that should file that way doesn’t. TurboTax Business is one product people search for, and we make no claim about what it does or costs. This page covers what to check, under any brand name.
Do you need business tax software or a personal return?
The answer comes from how your business is set up. A sole proprietor reports business income on a personal return, so personal software with a self-employment section may do the job. The filing date is June 15, 2026 for 2025, but any balance owing was still due April 30, 2026.
A corporation is a separate taxpayer with its own T2 return. Here, software built for corporate returns is a different thing entirely, and you should confirm that the one you’re looking at is on the CRA’s list for T2 filing.
| Item | What the CRA says |
|---|---|
| T2 filing date | Six months after the tax year ends |
| Balance due | Generally two months after year end |
| Balance due, some small business corporations | Three months after year end, if conditions are met |
| Late-filing penalty | 5% of unpaid tax plus 1% per full month, up to 12 months |
| Repeat or demand cases | 10% plus 2% per full month, up to 20 months |
If you are preparing your return using tax preparation software, you must use Canada Revenue Agency (CRA)-certified software.
Using tax preparation software, canada.ca
What should you check before you buy?
Start with the CRA’s page on T2 software. It lists more than 30 certified products and says outright that it doesn’t endorse or recommend any of them. It also says it’s your job to ask the developer about restrictions and to use the latest version. If something breaks, the developer is who you call, not the CRA.
Then ask practical questions. Does it handle your type of return, such as a corporation that has associated companies? Does it produce the financial statement schedules the return asks for? Can you export your work? We couldn’t check any product on these points, so you’d need the vendor’s answer in writing.
What will the return say about your tax?
A quick estimate before you start gives you something to test the software against. The corporate tax calculator shows $35,088 of tax on $300,000 of active business income for a small Ontario corporation, an average of 11.7%. Treat that as an approximation: the Ontario small business rate changed in 2026, so the figure is a blend, and associated companies share one limit.
If you’re a sole proprietor, the self-employed tax calculator gives $22,126 of income tax and CPP combined on $80,000 of net business income in Ontario. The CPP part is $8,892.90, because you pay both halves. It leaves out EI and business expenses, so don’t take it as your full bill.
Pay attention to timing too. Tax owing for a sole proprietor may mean instalments, and the tax instalments calculator lays out quarterly amounts.
How would a small company owner actually choose?
Take Nadia, who runs a two-person landscaping company in Moncton. She writes down what her return involves: one company, no associated corporations, a handful of year-end entries from her bookkeeper. Then she checks that the product is on the CRA’s certified list for T2 returns, tries the free demo if there is one, and enters last year’s numbers to see whether the software gives sensible results. That takes an evening and costs her nothing but time.
If the demo stumbles on something simple, like importing the trial balance, she moves on. A few bucks saved on the licence isn’t worth a return that has to be rebuilt by hand. And if her accountant files the T2 for her, the question flips: she doesn’t buy software at all, she asks which product the accountant uses and whether it’s certified. Our guide to self-employed and small business taxes is a good place to start if you’re still working out which type of return you file.
Where does software let people down?
It can’t decide what counts as a business expense. It can’t tell you if your company qualifies for the small business rate. If you type a wrong number in, it will carry it faithfully into the return. And a late return is still late, and the penalty is the same for any program you used.
The gap between the balance due date and the filing date catches people. You may have six months to file a T2, but the tax itself is generally due after two or three months.
The sources behind this page
Dates, penalties and filing rules come from the CRA‘s T2 guide and its page on certified corporation software, read in September 2026. Examples come from our calculators, which use 2026 federal and Ontario rates. The CRA doesn’t endorse any product, and this site has no link to it.
Frequently asked questions
Does my corporation have to file the T2 electronically?
Most do. The CRA says exceptions include insurance corporations, non-resident corporations, corporations reporting in a functional currency and corporations exempt from tax.
What is the penalty for not e-filing when required?
The CRA page states a $1,000 penalty for a corporation that has to file electronically and doesn't.
Is TurboTax Business right for me?
We couldn't confirm features or prices on an official page. Check that the product is certified for T2 filing and supports your return before you buy.
When is the T2 due?
Within six months of the end of the tax year. Any balance is generally due two months after year end, or three months for some small business corporations.
Does the CRA recommend a product?
No. The CRA says it does not endorse or recommend any product over another.
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