I am in the process of completing a T2125 with Turbotax online and have got to the "Location of your business" section where it is asking for my province, but only if I have a permanent business set up there.
I came across a similar question and the answer provided a link to an archived CRA publication entitled "Permanent Establishment of a Corporation in a Province", which still leaves me somewhat unclear as I am a self-employed sole proprietor with an unincorporated and unregistered business. The publication provided by the CRA mentioned here mainly refers to
corporations, so I do not know if any of this information would apply in
my situation or not.
Also, if I do not select a province and continue with the return, the "Review" section comes up with an error stating "Missing province of self-employment." (image of the error screen attached below).
I have done some more research on the definition of "permanent business" or "permanent establishment" as described in other articles, and it seems as if there is a more general set of conditions to determine whether or not a self-employed individual is considered to be conducting business as a "Permanent Establishment". This information seems to imply that since I conduct most of my business from a fixed home office, and all of my business from within Ontario, I am still considered to have a permanent business establishment, regardless of whether or not I have a registered business.
I may have just answered my own question, but I would still appreciate it if anyone can confirm that this is correct.
Simply put, the question is this: As a self-employed sole proprietor working from a
home office in Ontario under my own name without a registered business, would I be
considered to have a "permanent business" or "permanent establishment"?
Thank you.
