Information for the Self-Employed
As a self-employed person, you are considered to operate a sole proprietorship, which is why your income is referred to as business or professional income rather than, for example, work income.
Businesses can take different legal forms, each of which affects the business's tax obligations and level of debt liability.
Make sure you choose the right legal form for your business.
What is business income?
Generally speaking, business income is income from an activity you engage in to make a profit or with a reasonable expectation of making a profit. For example:
You engage in commercial activities
- You sell used clothing.
You earn income from online commercial activities
- You sell crafts on e-commerce platforms such as Amazon, Marketplace and eBay.
- You create customized jewellery and sell it online.
You operate a manufacturing or service business
- You sell your culinary creations at public markets, at neighbourhood events or to people you know.
- You provide manicure services out of your home.
You exercise a trade
- You prune trees on a small or large scale.
You practise a profession
- You are a translator regulated by the Office des professions du Québec and provide services to individuals and small businesses.
You are self-employed and work on a commission basis
- You took a residential real estate brokerage course and provide your services to real estate agencies.
You dispose of property that is produced or acquired solely in order to make a profit from its sale or resale
- You make and sell artisan soaps.
- You buy large quantities of luxury goods at a low price and resell them at a profit.
- You buy lots with a view to reselling them.
You provide childcare services
- You provide remunerated childcare services (with or without meals) on a regular basis for school-age children in your neighbourhood.
- You look after children on a one-off basis during the day, in evenings and on weekends, sometimes overnight, for remuneration.
You actively speculate in the stock market
- You flip stock.
You flip residential property
- You buy, renovate and sell property for profit.
For more information, see guide IN-155-V, Business and Professional Income.
Obligations as the operator of a sole proprietorship
As a self-employed person who operates a sole proprietorship, you may have to meet certain tax obligations based on your activities.
Reporting income and expenses
You must enclose either your financial statements or form TP-80-V, Business or Professional Income and Expenses, with your income tax return (TP-1-V). In either case, you must file separate documents for each of your businesses.
Other obligations
For more information about your obligations as an operator of a sole proprietorship, see Life Cycle of a Business. It contains all the information you need to choose the right legal form for your business and understand the ramifications of your choice as well as the different steps involved in operating a sole proprietorship or any other type of business.
Assistance program for the self-employed
What is the assistance program?
The program offers free one-on-one meetings or online group meetings to help self-employed people and small and medium-sized businesses understand their rights and tax obligations.
To find out how to register for a one-on-one meeting, click Assistance Program.
We also hold group meetings online. See Presentations by Revenu Québec for details.