Life events and taxes
Starting a small business
Chez Neena
Neena had always dreamed of opening her own food business, a place where her creativity, love of food, and flair for social media-worthy moments could come together. When she finally took the leap, she decided to launch a food truck, a mobile kitchen serving her signature poutine deviled eggs, creative comfort food, and seasonal specials, perfect for sharing and posting.
As a new small business owner, Neena wanted to get it right, from her menu to her tax obligations. Luckily, she remembered something Alex told her from earlier in the year: the CRA’s Liaison Officer (LO) service, which provides free, personalized guidance for small businesses and self-employed individuals.
She booked an in person meeting. Soon, a LO came by, ready to help.
Here’s what Neena learned during the visit:
- She needed to register for a Business Number (BN) to use CRA services like MyBA to access CRA accounts like GST/HST and payroll.
- Her food truck was a sole proprietorship, so all income (or losses) would be reported on her personal tax return.
- Since the business used her name, she could use her existing bank account, but was strongly encouraged to separate business finances for better tracking.
Armed with this advice, Neena took action. She set up a bookkeeping system, made sure every receipt and invoice was properly stored, and hired an accountant. She began using a digital point-of-sale system that automatically tracked sales and taxes automatically.
As the aroma of her creative dishes filled festival grounds, parks, and markets, word spread fast. Locals loved the playful menu, friendly vibe, and vibrant truck. Business grew steadily, and Neena soon hired cooks, and a bookkeeper to keep up with the demand.
Not a business proposal
One quiet evening, Neena thought she was meeting Alex for a quick bite. But as she arrived, she noticed something different. The truck was parked under twinkling lights, the serving window was decorated with flowers.
Alex guided her to a little table set just for two. After dessert, he stood, walked to her side, and dropped to one knee.
Tears welled in Neena’s eyes as Alex opened a small velvet box. She nodded, barely able to speak, as he slipped the ring on her finger. Before she could process what was happening, her friends and employees stepped out from behind the truck, cheering.
From poutine to bridal plans
Neena’s food truck is thriving, her heart is full, and a wedding is on the way. But what’s the CRA got to do with it?
As wedding bells ring, stay tuned—and learn why updating your marital status with the CRA matters more than you'd think.
Takeaways for small business owners
- You don’t have to do it alone: The CRA’s Liaison Officer (LO) service offers free, one-on-one support for small business owners and self-employed individuals.
- Register online for a Business Number: Register as a resident with a Canadian business
- You are required to keep records of all your transactions to support your income and expense claims: Business records