What are the tax filing deadlines for small businesses in Toronto?

In Toronto, small businesses must file their taxes according to the Canada Revenue Agency (CRA) deadlines. Generally, for corporations, the filing deadline is 6 months after the end of your fiscal year. For sole proprietors or partnerships, taxes are due by June 15, but any taxes owed must be paid by April 30 to avoid interest charges. It's important to stay on top of these deadlines to avoid penalties.

What are the tax rates for small businesses in Ontario?

Small businesses in Ontario are subject to federal and provincial tax rates. For corporations, the small business tax rate is 9% on the first $500,000 of active business income. Other income is taxed at the general corporate rate of 15%. In addition, Ontario applies a provincial tax rate on income. Tax rates can vary based on the type of business and revenue.

Can I deduct home office expenses for my business in Toronto?

Yes, if you run your business from a home office, you may be eligible to claim home office expenses such as a portion of your utilities, internet, phone bills, and property taxes. The deduction amount depends on the size of your office space relative to your home's total area.

Do I need to file taxes if my small business didn’t make any money?

Even if your small business in Toronto didn’t make any income, you are still required to file a tax return. For a corporation, you must file a T2 Corporation Income Tax Return annually, even if there’s no income. Failing to file can result in penalties and interest, so it’s important to stay compliant. If you're a sole proprietor, you’ll file a T1 tax return and report your business expenses and losses.