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Level 1
posted Jan 27, 2022 7:47:48 PM

If our business has been dormant for about 10 years is it hard to close out? How do I close it? The GST number has been closed for years.

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1 Best answer
Level 5
Jan 28, 2022 12:57:15 PM

If your business is a self-employed business (it is not incorporated), you don’t have a Business Number (or has closed the BN account), you have closed your GST number, you don’t have any employee (or have closed payroll account), and the business doesn’t have any activity (no expenses, no assets left, no loan, etc.), then you don’t need to fill in T2125 Statement of Business or Professional Activities for that particular business.

 

Otherwise, please check our TurboTax FAQ: Tax Obligations After Closing Your Business.

 

If you require further assistance please contact our phone support team or contact us directly on Facebook or Twitter.

5 Replies
Level 5
Jan 28, 2022 12:57:15 PM

If your business is a self-employed business (it is not incorporated), you don’t have a Business Number (or has closed the BN account), you have closed your GST number, you don’t have any employee (or have closed payroll account), and the business doesn’t have any activity (no expenses, no assets left, no loan, etc.), then you don’t need to fill in T2125 Statement of Business or Professional Activities for that particular business.

 

Otherwise, please check our TurboTax FAQ: Tax Obligations After Closing Your Business.

 

If you require further assistance please contact our phone support team or contact us directly on Facebook or Twitter.

Level 1
Jan 30, 2022 5:01:14 PM

It is self employed, no employees, closed out GST. We've been paying every year to file business income tax. We never filed a "last year of business" on income tax. Do we need to? Can we just do personal income tax instead? Thank you so much for your help!

Moderator
Feb 1, 2022 11:03:12 AM

If you are filing a separate T2 return for your business, then it is incorporated, and you will need to take steps to close it. Please see the following links for more information:

Government of Canada: Guide on dissolving a business corporation

Canada Revenue Agency (CRA): Closing CRA program accounts

 

For more assistance with regarding incorporated business tax returns (T2), you can visit the Intuit Profile support site.

Level 1
Feb 1, 2022 11:47:24 AM

We only do the Small business statement and it's full of zeros. It wasn't ever Incorporated. We usually fill out the T2125. Do I need to do that still? 

Moderator
Feb 1, 2022 3:12:36 PM

If you no longer operate your business, you no longer need to fill out the T2125 form.