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The LLP bookkeeping requirements from the CRA are short: keep books that let it work out the partnership’s income, and hold them for at least six years. Beyond that, the rules depend on which province created the LLP and on the profession it serves, and those provincial rules couldn’t be confirmed from official pages.
What does the CRA expect from a partnership?
Section 230 of the Income Tax Act applies to anyone carrying on a business, and a partnership carries on business. So the partnership must keep books and records at its place of business or home in Canada, in a form that lets tax be determined. The CRA’s retention rule is six years from the end of the last tax year the records relate to.
The partnership itself doesn’t pay income tax. Each partner reports a share of the income on a personal or corporate return. That’s why one set of good books matters so much: every partner’s return leans on the same numbers.
When must an LLP file a T5013?
Partnerships that carry on business in Canada file a partnership information return when they cross certain lines. The CRA’s T5013 filing page sets them out as follows.
| Trigger | Detail |
|---|---|
| Size | Revenues plus expenses (absolute values) over $2 million, or assets over $5 million, at the end of the fiscal period |
| Structure | Tiered partnership, or a corporation or trust as a partner |
| Other | Flow-through share investment with renounced expenses, or a written request from the Minister |
The filing due date and the late penalty weren’t on the pages we read, so take those from the CRA’s T4068 guide before you rely on them. The CRA also has an administrative policy that lets some partnerships skip the return. See if yours qualifies.
The size test catches more firms than you’d think, because it adds revenues and expenses together. A three-partner accounting LLP in Edmonton with $1,200,000 of revenue and $900,000 of expenses has $2,100,000 on that test, which is over $2 million even though its profit is only $300,000. The profit isn’t what counts here, so check the sum each year-end.
What financial statements does a partnership hold?
When a return is required, the partnership sends financial information coded with GIFI, covering the balance sheet and income statement; the CRA explains the coding in its GIFI guide, RC4088. The CRA says not to send your own statements with it, but to keep them for a request. In practice the partnership needs statements every year anyway, because the income split among partners comes from them.
Partners get a statement of partnership income, the T5013 slip, showing their share. Keep a record of how the split was agreed and applied, since that’s what the slip reflects.
Bookkeeping habits that suit a partnership
An LLP usually has more than one person spending money, and that’s where records go astray. A few habits help.
- Keep partner draws and capital contributions in separate accounts from expenses.
- Write down the profit-sharing terms and the date they last changed.
- Store receipts with the transaction, one system for everyone.
- If the LLP is registered for GST/HST, keep sales tax records apart. The GST/HST calculator shows the split between price and tax on any invoice.
Payroll for staff adds more records. The payroll remittance calculator is a quick check that what you remit matches what you deducted.
What a partner’s share can cost in tax
Suppose your share of partnership income is $80,000 in Ontario. If the CRA treats it as business income and you pay CPP on it as a self-employed person, the self-employed tax calculator shows $13,233.57 of income tax and $8,892.90 of CPP for both halves, $22,126.47 in all. That leaves $57,873.53, or 27.7% less.
The tool leaves out EI and GST/HST, and its business deductions reduce income tax but not CPP, so read the total as an estimate. For more on the business side, see the business tax hub.
Where the LLP rules stop being federal
An LLP is created under provincial law, and only some professions can use it. Provincial statutes may add duties about accounts, audits or annual filings. None of them was verified for this page, so read the partnership act of the province where you registered, or ask the regulator of your profession.
Don’t assume the partnership agreement covers you either. It can say who keeps the books. It can’t lower the federal record standard.
What should a new LLP set up in the first month?
A business bank account in the LLP’s name, a capital account for each partner, a written profit-sharing clause, one place for receipts and a calendar with the fiscal period end. A few bucks spent on an accountant to check the setup in month one usually beats a clean-up at tax time.
How we checked the figures
The record and retention rules come from section 230 of the Income Tax Act and CRA circular IC78-10. The T5013 conditions come from the CRA page on filing a partnership information return, and GIFI details from publication RC4088, all read in September 2026. Tax figures come from this site’s 2026 calculators. We’re an independent site, and no government body is behind it.
Frequently asked questions
How long must an LLP keep its records?
At least six years from the end of the last tax year they relate to, and longer if there is an open dispute.
Does an LLP pay income tax itself?
No. Each partner reports a share of the partnership income on their own return.
When does a partnership have to file a T5013?
When revenues plus expenses pass $2 million or assets pass $5 million, or when it has a tiered structure or a corporate or trust partner, among other triggers.
Do I send financial statements with the T5013?
You send GIFI coded financial information. Keep your full statements for a CRA request.
Do provincial rules add anything for LLPs?
They can. We didn't confirm the details, so check your province's partnership law and your professional regulator.
- Self-employed taxes in Canada: income, CPP and GST
How tax works when you are self-employed in Canada: reporting income and expenses, paying both halves of CPP, instalments and when to register for GST