Sole Proprietorship

• A one-owner operation where the owner directs all the activities of the business, assumes all authorities and obligations, and is liable for its business debts. The sole proprietor income is reported to revenue Canada on the standard tax return (T1 General) together with Revenue Canada's required statement of business or professional activities.

• Documentation requirements - Any one of the following must confirm at least two (2) years business-for-self tenure:

  • Business License

  • GST/HST Return Summary

  • T1 Generals with statement of business activities attached for a minimum 2 years prepared by an arm's length third-party

  • Audited Financial Statements for the last 2 years, prepared and signed by a CA

Plus, the most recent years’ Notice of Assessment from the borrower(s) to confirm the line 150 amount and no income tax arrears (Note: in the province of Quebec, both federal and provincial NOA's will be required)

 

Partnerships

• Partnerships are businesses owned by two or more individuals who share the profits or losses of the business operation. The partnership income is reported to Revenue Canada on the standard tax report (T1 General) together with Revenue Canada's required statement of business or professional activities, which reflects the percentage of the NET income or loss for each partner of the enterprise.

• Documentation requirements - Any one of the following must confirm at least two (2) years business-for-self tenure:

  • Business License

  • GST/HST Return Summary

  • T1 Generals with statement of business activities attached for a minimum 2 years prepared by an arm's length third-party

  • Audited Financial Statements for the last 2 years, prepared and signed by a CA

Plus, the most recent years’ Notice of Assessment from the borrower(s) to confirm the line 150 amount and no income tax arrears (Note: in the province of Quebec, both federal and provincial NOA's will be required)

 

Corporations

• A limited company or corporation is a legal entity, separate from the persons (all shareholders) who own it. The business can own assets, enter into contracts and conduct business transactions in its own capacity. The company is called limited because the liability of the shareholders is limited to their investment. All provincial Corporations must obtain articles of incorporation from the province in which they are registered or may be federally incorporated. The applicant's personal income will be reported by T4 from the corporation.

• Documentation requirements - Any one of the following must confirm at least two (2) years business-for-self tenure:

  • Articles of incorporation

  • Audited Financial Statements for the last 2 years, prepared and signed by a CA

Plus, the most recent years’ Notice of Assessment from the borrower(s) to confirm the line 150 amount and no income tax arrears (Note: in the province of Quebec, both federal and provincial NOA's will be required)