Corporate Tax Filing for Small Business
T2 returns, small business deduction optimization, NTR financial statements, salary-dividend planning, CCA maximization, HST filing and CRA compliance for Canadian small business corporations. From $400.
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The $500,000 Line That Determines Whether Your Small Business Pays 12.2% or 26.5% Corporate Tax
The small business deduction (SBD) reduces the combined federal and Ontario corporate tax rate from 26.5% to 12.2% on the first $500,000 of active business income. That is a difference of $71,500 in tax on a $500,000 income. Every dollar above $500,000 is taxed at more than double the SBD rate. The most important job of your T2 return is making sure your corporation stays on the right side of that line through salary payments, bonus declarations, CCA claims and other deductions. A properly filed T2 is not just a compliance exercise. It is the single biggest tax planning opportunity your small business has every year.
We file corporate tax returns for small businesses across Ontario and Canada. T2 filing, NTR financial statements, SBD optimization, salary-dividend planning, CCA maximization, HST filing and CRA compliance. From $400. AFFORDABLE flat fees. No hourly billing.
Book Free Consultation
Corporate Tax Services for Small Businesses
T2 Corporate Return
Full T2 with GIFI, CCA optimization, loss carryforwards and SBD calculation.
NTR Financial Statements
Balance Sheet, Income Statement and Notes from reconciled books. From $250.
Salary-Dividend Planning
Optimal owner compensation. RRSP room, CPP savings, tax bracket management.
HST Filing
Quarterly or annual. ITC recovery on all business purchases. Quick Method analysis.
Year-End Tax Planning
Pre-year-end review. Bonus declaration. Equipment purchases. SBD threshold management.
CRA Compliance
Instalments, correspondence, audit support and penalty relief for small business corporations.
How We Handle Corporate Tax for Small Businesses
A 6-step process designed for owner-operated businesses. AFFORDABLE flat fees.
Year-End Bookkeeping and Reconciliation
Clean books are the foundation of an accurate T2.
- All bank accounts, credit cards and loan accounts reconciled to year-end.
- Revenue and expenses categorized correctly for CRA reporting.
- Shareholder loan account reconciled. Withdrawals and repayments tracked.
- Intercompany transactions identified and recorded properly.
- Trial balance finalized for financial statement preparation.
NTR Financial Statements
CRA requires financial statements with every T2.
- Notice to Reader financial statements from the reconciled trial balance.
- Balance Sheet, Income Statement and Notes per CPA standards.
- Retained earnings continuity schedule across years.
- GIFI codes mapped to every line item for CRA submission.
- From $250/year. Included in most T2 engagement fees.
SBD Optimization and Tax Calculation
The most important planning opportunity on your T2.
- Active business income identified and separated from passive income.
- SBD applied on first $500,000 at 12.2% combined Ontario rate.
- Income above $500,000 managed through salary, bonuses or CCA to stay at SBD rate.
- Passive investment income monitored. Over $50,000 reduces SBD access.
- Associated corporation rules checked for shared $500,000 limit.
CCA and Deduction Maximization
Every eligible deduction claimed. Nothing left on the table.
- CCA on vehicles (Class 10/10.1), equipment (Class 8), computers (Class 50), furniture (Class 8).
- Leasehold improvements (Class 13). Accelerated Investment Incentive applied.
- Home office expenses calculated if operating from home.
- Business use of vehicle: logbook maintained, expenses prorated.
- Professional development, software subscriptions and insurance reviewed.
Salary-Dividend Optimization
Pay yourself the right way. Save thousands every year.
- Salary to create RRSP room ($180,500 for maximum $32,490 room in 2026).
- Dividend top-up for CPP savings ($4,056/year at maximum).
- Year-end bonus to reduce corporate income below $500,000 SBD threshold.
- TOSI rules reviewed for any family member shareholders.
- CCB and OAS impact modelled for owner and spouse.
Filing, Payment and CRA Compliance
Filed electronically. Paid on time. CRA happy.
- T2 filed electronically using CRA-certified software. Confirmation retained.
- Balance owing paid before the payment deadline (2 or 3 months after year-end).
- Instalment schedule reviewed and adjusted for the following year.
- T4 and T5 slips issued by February 28.
- Notice of Assessment reviewed when received. Discrepancies flagged.
Free Small Business Tax Consultation
Free Small Business Tax Consultation
Case Studies: Small Business Corporate Tax Filing
IT Consulting Corp, Toronto ($320K Revenue)
Solo IT consultant paying all income as salary. No CCA claimed on $18,000 in equipment. No year-end bonus strategy. We restructured: $120K salary + $60K dividend. Claimed CCA. Declared $40K bonus before year-end. Tax savings: $8,200/year. RRSP room created: $21,600. Get Started →
E-Commerce Corp, Mississauga ($180K Revenue)
Online retailer with $180K revenue, 2 part-time employees. Previous accountant filed T2 late 2 years in a row triggering repeat penalty: $6,800. We filed penalty relief (RC4288), recovered $3,400 in unclaimed ITCs, optimized CCA on warehouse equipment and reduced total tax by $4,100.
Marketing Agency, Vaughan ($460K Revenue)
Marketing agency with 4 employees approaching the $500K SBD threshold. Income at $485K without planning. We declared a $35K bonus to the owner before year-end, keeping all income under $500K at the 12.2% rate instead of 26.5%. Tax saved on the $35K: $5,005. Plus salary created RRSP room. Tax Planning →
Cleaning Company, Brampton ($95K Revenue)
Newly incorporated cleaning business. Owner had not filed a T2 in the first year. CRA demand to file received. We caught up bookkeeping, prepared NTR financial statements, filed the T2 within 3 weeks. Tax owing: $4,800. No penalty because filed before arbitrary assessment. Set up monthly bookkeeping to prevent recurrence.
Small Business Deduction: The Numbers That Matter
| Income Level | Combined Ontario Rate | Tax on $100K | Difference vs SBD |
|---|---|---|---|
| First $500,000 (SBD) | 12.2% | $12,200 | Baseline |
| Above $500,000 (General) | 26.5% | $26,500 | $14,300 more per $100K |
$71,500 at Stake: On $500,000 of active business income, the SBD saves $71,500 compared to the general rate. Keeping income at or below $500,000 through salary, bonuses or CCA is the most impactful tax planning decision your small business makes each year.
Common T2 Mistakes Small Businesses Make
| Mistake | What Goes Wrong | How We Fix It |
|---|---|---|
| Not claiming CCA | Tax paid on income that could have been offset by depreciation | CCA schedule for every asset class. Nothing missed. |
| All salary, no dividends | Overpaying CPP by $4,056/year | Salary-dividend split optimized annually. |
| Income over $500K without planning | $14,300 extra tax per $100K above SBD | Year-end bonus or salary to stay under threshold. |
| Shareholder loan not reconciled | Section 15(2) taxable benefit on unreturned amounts | Shareholder loan tracked monthly. Repaid within deadline. |
| Late T2 filing | 5% + 1%/month penalty. 10% + 2% if repeat. | Filed electronically well before deadline. |
| Missing ITCs on HST | Thousands in credits not claimed on business purchases | Every eligible purchase tracked. ITCs claimed every period. |
| No year-end planning | Tax surprises. No time to optimize. | Pre-year-end review 60 days before fiscal year-end. |
| Passive income over $50K | SBD clawback. $5 reduction per $1 over $50K. | Investment strategy reviewed. Holding company considered. |
What Our Small Business T2 Filing Includes
| Service | What We Do |
|---|---|
| Year-end bookkeeping | Bank reconciliation, categorization and trial balance. |
| NTR financial statements | Balance Sheet, Income Statement, Notes. From $250/year. |
| T2 corporate return | All schedules, GIFI, SBD calculation, loss carryforwards. |
| CCA optimization | Every asset class claimed. Accelerated Investment Incentive applied. |
| Salary-dividend planning | RRSP room, CPP savings, bracket management modelled annually. |
| HST filing | ITC recovery. Quick Method analysis. From $75/period. |
| T4 and T5 slips | Issued by February 28 for all owner and employee payments. |
| Instalment planning | Quarterly instalments calculated. Overpayment avoided. |
| CRA correspondence | Demands, assessments, compliance letters handled. |
| Year-end planning | Pre-year-end tax estimate. Bonus strategy. SBD threshold check. |
Does Your Small Business Need a Better T2 Filing?
- Your CPA does not discuss salary vs dividend before year-end
- You are not sure if your corporation qualifies for the SBD
- CCA has not been claimed on vehicles, equipment or computers
- Your shareholder loan account is not reconciled
- You do not receive a pre-year-end tax planning call
- Your T2 is filed at the last minute with no planning
- ITCs on HST are not being tracked or claimed fully
- You pay more corporate tax each year without understanding why
- You are approaching $500K income with no strategy to manage it
- You have passive investment income and are not sure how it affects your SBD
- You received a CRA instalment reminder and do not know what to do
- You want fixed-fee T2 filing with no surprises
Small Business T2 Filing from $400. Fixed Fee.
NTR statements, all schedules, SBD optimization. 30-Day Money-Back.
Why Small Businesses Choose Gondaliya CPA
SBD Specialists
$500K threshold managed. Salary, bonus and CCA strategies every year-end.
Fast Turnaround
Most T2s filed within 4 to 6 weeks of year-end with clean books.
Fixed-Fee Pricing
No hourly. 30-Day Money-Back. 60-Day Fees-Matching.
1300+ Reviews
Canada's most AFFORDABLE CPA. Flat fees for every service.
Small Business T2 Filing Pricing
| Service | Fee | Includes |
|---|---|---|
| T2 filing (under $100K revenue) | From $400 | NTR statements, GIFI, all schedules, CCA, SBD |
| T2 filing ($100K-$200K) | From $2,450 | Full T2, salary-dividend plan, year-end strategy |
| T2 filing ($200K-$500K) | From $3,675 | SBD threshold management, CCA optimization, full planning |
| T2 filing ($500K-$1.5M) | From $4,900 | Complex corp, multi-shareholder, holding company coordination |
| Monthly bookkeeping | From $150/month | Bank reconciliation, categorization, monthly P&L. HST and T2 FREE. |
| HST filing | From $75/period | ITC recovery, Quick Method analysis, filing. |
Know Your Exact Fee Before We Start
AFFORDABLE flat fee. 30-Day Money-Back. 60-Day Fees-Matching.
Frequently Asked Questions: Small Business Corporate Tax Filing
Meet Your Small Business Tax Specialists
Sharad Gondaliya, CPA
Founder & Managing Director
Gondaliya CPA Professional Corporation
Sharad manages all small business T2 engagements, SBD optimization, salary-dividend planning and CRA audit defence.
Vandana Goel, CPA
Senior Accountant
Gondaliya CPA Professional Corporation
Vandana handles small business bookkeeping, NTR financial statements, CCA schedules and T2 preparation.
What Our Clients Say
1300+ five-star reviews from business owners across Ontario and Canada.
10 Smart Tax Strategies for Small Business Corporations
| # | Strategy | Why It Saves You Money |
|---|---|---|
| 1 | Keep active business income under $500,000 | 12.2% vs 26.5%. $14,300 saved per $100K under the threshold. |
| 2 | Declare year-end bonus before fiscal year-end | Reduces corporate income. Deductible if paid within 180 days. |
| 3 | Use salary-dividend split for owner compensation | RRSP room from salary. CPP savings from dividends. Best of both. |
| 4 | Maximize CCA on all business assets | $50,000 in equipment = $10,000+ deduction in Year 1. |
| 5 | Claim all ITCs on HST | Every business purchase with HST is recoverable. Thousands per year. |
| 6 | File T2 early | Early refunds. Zero penalty risk. Better cash flow. |
| 7 | Reconcile shareholder loan before year-end | Avoids Section 15(2) taxable benefit on unreturned amounts. |
| 8 | Monitor passive investment income | $50K threshold. Every $1 over reduces SBD by $5. |
| 9 | Apply loss carryforwards from prior years | Losses from COVID or startup years offset current profitable income. |
| 10 | Transition to monthly bookkeeping | $150/month prevents year-end surprises. HST and T2 included FREE. |
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- Xero Setup & Support
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Small Business T2 Filing Done Right. From $400.
T2, bookkeeping, NTR statements, SBD optimization, salary-dividend planning. AFFORDABLE flat fees. No hourly.