# Starting a business: what changes for your taxes

> What changes for your taxes when you start a business in Canada: reporting income, GST/HST registration, instalments and the records you need to keep

Start a business and you stop being a person with a tax slip. You're now the one who counts the income, finds the receipts and sends the money in, and nobody does it for you if you forget.

## What do you report?

As a sole proprietor you report business income and expenses on your own return, and the profit is taxed at your personal rates. You also pay both halves of CPP, the employee share and the employer share, because you're both. Estimate it with the [self-employed tax calculator](https://tax-services.ca/calculators/income-tax/self-employed-tax), and see our [expense checklist](https://tax-services.ca/checklists/self-employed-expenses) for the costs people forget.

Say Priya in Winnipeg starts a bookkeeping side gig. Nobody sends her a pay stub, so her own invoices become the income line on her return.

## When do you register for GST/HST?

You must register once your taxable sales pass $30,000 across four consecutive calendar quarters. Before that you're a small supplier. You can still register earlier, and that lets you claim back the tax you pay on business costs. The catch is that you then have to charge the tax on what you sell. The [sales tax guide](https://tax-services.ca/guides/gst-hst-pst) explains how.

## What about paying during the year?

Nobody takes tax off your income any more, so the CRA may ask you to pay in quarterly instalments. The [instalments calculator](https://tax-services.ca/calculators/income-tax/tax-installments) shows the amounts, and the dates are on the [tax calendar](https://tax-services.ca/tax-calendar). A few bucks set aside from every invoice, kept in a separate account, makes the bill a lot less scary.

## How long should you keep your records?

Keep every receipt. Records matter more than any trick, and you should hold them for six years. For more, read the [self-employed and small business guide](https://tax-services.ca/guides/self-employed-and-small-business).

## What mistake do new owners make most?

Mixing personal and business money. A separate bank account costs little and saves hours later.

## Before you act on this page

You're reading a general overview, and it can't see your slips, your province or your family, so you shouldn't treat it as advice for your own return. If anything here doesn't match a letter from the CRA, the letter wins.

Stuck?

Ask a qualified preparer or the CRA itself, and keep the [document checklist](https://tax-services.ca/checklists/documents-for-your-tax-return), the [tax calendar](https://tax-services.ca/tax-calendar) and the [filing guide](https://tax-services.ca/guides/file-your-taxes) close by. Not sure which province's rules apply to you? The [province index](https://tax-services.ca/provinces) lists them all.

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Source: https://tax-services.ca/life-events/starting-a-business
Last updated: 2026-10-07
Independent information site. Not affiliated with the CRA. No services, no guarantee of accuracy. See https://tax-services.ca/disclaimer