The income tax forms you need to report your business income depend on the form of your business.
If your business is a sole proprietorship or partnership, you report your business income on your T1 income tax form.
If you are operating a sole proprietorship, you will report your business income by completing Form T2125, which replaces the old T2124 (Statement of Business Activities) and Form T2032 (Statement of Professional Activities). This form are included in the T1 income tax form package.
If your business is incorporated, you will report your business income on a T2 income tax return.
Unfamiliar with the process of reporting business income and filing your taxes as a sole proprietorship or partnership using the T1 income tax form? Your First Business Income Tax Return will lead you through the process.
