What does a nil corporate return cost

A dormant corporation still files

A corporation that did nothing all year still has to file a T2. A nil return starts at $750 at HBT. Where the company had some activity but not much, a few transactions or a single invoice, that is a minimal activity return from $1,500.

The reason to file a dormant company rather than ignore it is that the CRA can raise an arbitrary assessment on its own estimate, and correcting that later costs more than the return would have. Dissolving the company properly is the alternative, and that is a different conversation.

Nil, minimal, or wind it up

How the work begins

1. 1

   Step 1: Confirm the activity

   Bank movement and any invoices decide which return applies.

2. 2

   Step 2: Price agreed

   Nil or minimal activity, in writing before the work.

3. 3

   Step 3: Filed, or wound up

   The return filed, or the dissolution discussed if that fits better.

Does a dormant corporation have to file a tax return?

Yes. A Canadian corporation generally files a T2 every year even with no activity. At HBT Accounting a nil return starts at $750 and a minimal activity return at $1,500, plus GST or HST where it applies. Not filing can lead the CRA to assess on its own estimate, which usually costs more to correct than filing would have cost.