Topic

Tax & GST/HST

Registration thresholds, dividends and income splitting, and the tax consequences that follow the structure you pick.

Business tax questions on this site cluster around registration and structure rather than tax planning: when GST/HST registration becomes mandatory, which CRA accounts a corporation gets automatically, and how the structure you choose changes what you file. One orientation fact does a lot of work: sales tax registration is entirely federal. Ontario’s HST and Alberta’s GST-only status change the rate you charge, not where or how you register.

The registration picture

RegistrationWhen it appliesWho runs it
GST/HST accountMandatory once worldwide taxable revenue exceeds $30,000 in a single calendar quarter or over the previous four consecutive quarters; optional below thatCRA
Corporation income tax accountCreated automatically with the Business Number at incorporation (federal, Alberta, and Ontario alike)CRA
Payroll accountNeeded before the first payroll, including a salary to yourselfCRA
Business NumberAssigned automatically at incorporationCRA, via the incorporating registry

The GST/HST threshold turns on the word “exceeds”: at exactly $30,000 a business is still a small supplier. Taxi and ride-share drivers must register regardless of revenue.

Start with these answers

Mistakes that trigger CRA problems

  1. Waiting for the CRA to notice the threshold. Registration obligations start from the effective date the rules set, not from when the paperwork is filed; a late registration means collecting and remitting retroactively.
  2. Counting only local revenue. The small-supplier test uses worldwide taxable supplies, including zero-rated sales and associated businesses’ revenue.
  3. Missing the payroll account when paying yourself a salary. Owner salaries run through payroll like anyone else’s.

Official starting points

Guide last updated August 8, 2026.

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