11/23/2025
If your business isn’t incorporated, you’re automatically taxed as a sole proprietor, or a self employed business owner.
This means that you and your business are treated as one for tax purposes.
That’s why:
✔ Your business income goes on your personal tax return
✔ You don’t file a separate corporate return
✔ You’re responsible for tracking income/expenses throughout the year
✔ You can claim business deductions (home office, phone, supplies, etc.)
Many self-employed Canadians make the mistake of filing incorrectly, which can lead to:
– Missed deductions
– Overpaying taxes
– Receiving a reassessment from CRA
Whether you’re a small business owner, freelancer, creator, or service provider, understanding how your business structure affects your taxes is essential.
Want to be fully prepared for tax season?
📩 Message us to start your self-employed filing with Optimal Tax Services.