Starting a business? That first wave of energy is hard to beat—until the tax stuff rolls in. Suddenly, you’re staring at CRA forms, trying to figure out what’s due, when it’s due, and what even counts as a “real” expense. If you’re in that early phase, take a breath. This guide walks you through the basics without all the confusing tax jargon.
1. Pick your business structure
Are you going solo as a sole proprietor? Teaming up as a partnership? Or going all in and incorporating? The structure you pick affects how you’re taxed, how much legal protection you have, and how complicated your paperwork will be.
Lots of people start as sole proprietors to keep things simple. But if you’re planning to grow or raise money, incorporating might make more sense. It also helps with things like opening a business bank account and applying for small biz programs.
2. Get your BN
Your BN (Business Number) is like your business ID with the CRA. You’ll need it to charge tax, file returns, pay employees—basically anything official. It’s free and fast to register online. Just get it done early so you’re not scrambling later.
3. Understand what you need to file
This is where a lot of new founders get tripped up. It’s not just income tax. Depending on what you offer and how much you earn, you might need to deal with GST/HST, payroll deductions, and quarterly filings too.
That’s where Abid Manzoor comes in. As a tax strategist at Webtaxonline, he helps new businesses set things up right from day one. From choosing the right structure to avoiding CRA red flags, he makes sure your tax foundation is solid, so you can focus on actually growing your business. And if you’re not sure what applies to you, it’s worth talking to an accounting firm in Toronto that knows how to handle startups.
4. Track everything
You don’t need fancy software. A basic spreadsheet will do the job—just make sure you actually use it and track what’s coming in and going out. It’ll make tax time way less stressful. Plus, you’ll know how your business is doing—before you find out the hard way.
5. Don’t leave money on the table
That Canva Pro subscription? The Uber to a client meeting? Your internet bill if you work from home? These could be write-offs.
A good accountant will tell you what qualifies and make sure you’re claiming everything you’re allowed to. Even small things add up fast over a year.
6. Meet your deadlines
Missing deadlines leads to penalties. Simple as that. Mark them on a calendar or set up reminders. It’s one of the easiest ways to stay on top of your finances. Even if you haven’t made much yet, filing on time builds a habit and keeps you out of trouble.
Final Thought
It’s easy to overthink taxes. But once you’ve got the basics down and keep up with things, it’s way less stressful—especially if you’ve got someone to call when you’re stuck. And if you’re looking for support, WebtaxOnline has helped plenty of new startups do it right, from day one.
