When you incorporate your business, your GST/HST registration status may change significantly, even if you were already registered as a sole proprietor. As a corporation, you become a separate legal entity from the CRA's perspective, which means your business and personal GST/HST registrations are treated independently. If your incorporated business has revenues over $30,000 in a rolling 12-month period, you must register for GST/HST, and your corporation will need its own separate GST/HST account number distinct from any personal registration you may hold. Understanding how incorporation affects your tax number and filing obligations is essential to avoid penalties and ensure smooth operations in 2026. Incorporation triggers several important GST/HST changes: - New Legal Entity: Your corporation is a separate person under Canadian law, requiring its own GST/HST account - Fresh Registration Timeline: The 12-month revenue threshold resets when you incorporate, even if your sole proprietorship was already registered - Input Tax Credits (ITCs): Only expenses incurred by the corporation (not personal expenses) generate ITCs - Multi-Location Reporting: If you operate in multiple provinces, your corporation may need separate HST registration in some provinces - Filing Deadlines: Corporate GST/HST returns follow different deadlines than sole proprietor returns If you were previously
No. When you incorporate, you must apply for a new GST/HST account for the corporation. Your sole proprietor account remains separate and can only be used if you continue self-employed activities outside the corporation.
Yes. The $30,000 GST/HST registration threshold resets when you incorporate, even if your sole proprietorship exceeded that amount. This gives you a fresh 12-month period to reach the threshold.
Only if you transfer the expense to the corporation through a documented reimbursement. Personal expenses that aren't reimbursed to the corporation cannot generate input tax credits.
You must settle all outstanding GST/HST owing from your sole proprietorship before or during the incorporation process. This includes filing a final GST/HST return covering your business activity up to incorporation day.
Voluntary registration may be worthwhile if you plan to claim significant input tax credits on business expenses. Use our GST/HST Calculator to compare the benefit of ITCs against the cost of compliance.