First 90 Days Self-Employed Checklist

A printable checklist covering the first 90 days of self-employment in Canada. Week 1: open a separate business bank account, start income/expense log, set up CRA My Account + My Business Account. Weeks 2-4: register for a Business Number (free, online via BRO), understand the GST/HST $30,000 threshold (rideshare drivers: register immediately), set up a 'Tax — DO NOT SPEND' savings account with 20-32% of every payment. Month 2: set up bookkeeping mapped to T2125 categories, start a vehicle mileage logbook, check home office eligibility, handle provincial registrations (Quebec dual filing). Month 3: understand instalment payments ($3,000 threshold), face the CPP shock (11.9% self-employed rate, max $8,860/year), learn the April 30 payment vs June 15 filing distinction.

Last reviewed: May 26, 2026

Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact CRA. Read our editorial scope →

What it contains

Printable checklist with tick boxes organised in 4 phases: Week 1 (5 actions), Weeks 2-4 (5 actions), Month 2 (5 actions), Month 3 (5 actions). Each action includes a brief explanation of why it matters and the dollar cost of skipping it. Includes a 'Dollar Shock' box showing total tax at $80,000 Ontario ($26,000+), a CPP shock explainer, and a common first-year mistakes section with costs at three income levels. Provincial notes for Quebec (dual filing), Ontario (Health Premium), and BC (PST). Not financial advice — seek advice from a professional for your specific situation.

How to use it

Print or save the checklist

Copy the checklist text or print this page. Work through it in order — the phases are sequenced so each builds on the previous one. Week 1 actions are genuinely urgent (separate your money before anything else).

Use the tax reserve percentages from day one

The single most important action: every time income arrives, transfer the reserve percentage to a separate 'Tax — DO NOT SPEND' account. At $40k net income: 20-22%. At $80k: 28-32%. At $150k: 35-40%. These are higher than employees expect because self-employed Canadians pay BOTH sides of CPP (11.9%, not 5.95%).

Don't skip the vehicle logbook

CRA requires a contemporaneous mileage logbook to support vehicle expense claims. Start it in Week 1 even if you think your vehicle use is minor. Missing the logbook commonly costs $2,000-$5,000 in lost deductions. Record: date, destination, purpose, kilometres, odometer readings.

Check provincial obligations in Month 2

Quebec residents: you file BOTH a federal T1 and a provincial TP-1. You need separate registration with Revenu Québec for QST + QPP + QPIP. Ontario residents: Ontario Health Premium applies (0.5-1% stealth layer on top of federal + provincial tax). BC residents: check if PST obligations apply to your trade.

Copy the letter text

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FIRST 90 DAYS SELF-EMPLOYED IN CANADA — CHECKLIST
  Print this. Work through it in order. Each action has a reason.

  === WEEK 1 (DAYS 1-7): SEPARATE EVERYTHING ===

  [ ] Open a separate business bank account
  WHY: CRA looks at banking records in audits. Mixed accounts = audit headache.
  Sole props can use personal legal name on the account.

  [ ] Start an income log: date, client, amount, method, description
  WHY: CRA requires records from day one. Reconstructing 12 months later = lost deductions.

  [ ] Understand the no-withholding reality
  WHY: Nobody is deducting tax for you anymore. YOU are responsible for income tax + CPP.
  Budget as if 25-35% of every dollar is already spoken for.

  [ ] Set up CRA My Account + My Business Account
  WHY: Security code arrives by mail (1+ weeks). Start now so it's ready when you need it.
  Download CRA apps for mobile access.

  [ ] Start saving every business receipt in a cloud folder
  WHY: No receipt = no deduction. CRA accepts digital copies. Organize by T2125 category.

  === WEEKS 2-4: REGISTER AND LOCK IN TAX RESERVE ===

  [ ] Get a Business Number (BN) from CRA
  HOW: Free. Online via Business Registration Online (BRO), by phone 1-800-959-5525,
  or by mail (Form RC1). Online is fastest — often same-day.

  [ ] Understand the GST/HST $30,000 threshold
  RULE: You MUST register for GST/HST within 29 days of exceeding $30,000 in taxable
  supplies over 4 consecutive calendar quarters or in a single quarter.
  EXCEPTION: Rideshare drivers (Uber, Lyft) must register IMMEDIATELY regardless of revenue.
  TIP: If you're B2B and approaching $30k, register voluntarily — your clients can claim ITCs.

  [ ] Calculate your tax reserve percentage and start transferring
  $40,000 net income: set aside 20-22%
  $80,000 net income: set aside 28-32%
  $150,000 net income: set aside 35-40%
  WHY HIGHER THAN EXPECTED: You pay BOTH employer and employee CPP (11.9%, not 5.95%).

  [ ] Open a dedicated "Tax — DO NOT SPEND" savings account
  RULE: Transfer the reserve percentage THE SAME DAY income arrives. No exceptions.
  COST OF SKIPPING: $20,000+ surprise bill in April.

  [ ] Check if rideshare/taxi applies to you
  If yes: register for GST/HST NOW, regardless of revenue. Mandatory from $0.

  === MONTH 2: BOOKKEEPING AND DEDUCTIONS ===

  [ ] Set up bookkeeping mapped to T2125 categories
  CATEGORIES: Advertising | Meals (50% deductible) | Vehicle | Office supplies |
  Professional fees | Phone/internet (business %) | Travel | Subcontractor payments
  TOOLS: Spreadsheet at minimum. Wave (free) or QuickBooks ($20-40/month).

  [ ] Start a vehicle mileage logbook — TODAY
  CRA requires contemporaneous records: date, destination, purpose, km driven,
  odometer start + end. Record odometer on January 1 and December 31 each year.
  Business-use % = business km / total km for the year.
  COST OF SKIPPING: $2,000-$5,000 in lost deductions at moderate incomes.

  [ ] Check home office eligibility
  QUALIFY IF: Principal place of business, OR used regularly and exclusively for
  business AND to meet clients.
  NOTE: The flat-rate $2/day method was COVID-only. NOT available for 2023+.
  POTENTIAL SAVING: $1,500-$4,700 depending on housing costs and province.

  [ ] Handle provincial registrations
  QUEBEC: Separate registration with Revenu Québec for QST + QPP + QPIP. You file
  BOTH a federal T1 AND a provincial TP-1. This is a separate tax system.
  ONTARIO: No separate registration, but Ontario Health Premium adds a stealth 0.5-1%.
  BC: Check if PST obligations apply to your trade (separate from GST).
  ALBERTA: No provincial sales tax. Provincial income tax filed with federal T1.

  [ ] Determine if you need trade-specific licences or insurance
  Construction: WCB/WSIB registration often mandatory from first contract.
  Professional services: check provincial licensing (engineering, accounting, legal).

  === MONTH 3: INSTALMENTS, CPP SHOCK, DEADLINES ===

  [ ] Understand instalment payments
  THRESHOLD: If you'll owe >$3,000 in net tax (federal), you must pay quarterly.
  Quebec: $1,800 provincial threshold (separate payment to Revenu Québec).
  DATES: March 15, June 15, September 15, December 15.
  FIRST YEAR: Usually no instalment obligation (no qualifying prior year).
  SAFE HARBOUR: Pay what CRA's Instalment Reminder (INNS) says = zero interest.

  [ ] Face the CPP shock
  Self-employed CPP rate: 11.9% on earnings $3,500-$71,300
  CPP2: 8% on earnings $71,300-$81,200
  Maximum CPP+CPP2 at $80k+: $8,860.20/year
  Quebec: QPP is HIGHER (6.4% each side, not 5.95%)
  WHY IT'S A SHOCK: Employees pay 5.95% and their employer matches. You pay both sides.

  [ ] Decide on EI opt-in (optional for self-employed)
  COST: Employee rate only (1.64% of insurable earnings, max ~$1,049/year)
  BENEFIT: Maternity, parental, sickness, compassionate care, family caregiver benefits
  CATCH: 12-month waiting period from registration before you can claim
  NOT INCLUDED: Regular EI benefits (you can't claim EI if business slows down)

  [ ] Learn the critical deadline distinction
  APRIL 30 = TAX PAYMENT DEADLINE. Interest starts May 1 on unpaid amounts.
  JUNE 15 = SELF-EMPLOYED FILING DEADLINE. Late-filing penalty starts June 16.
  THE TRAP: Many self-employed assume they have until June 15 for everything.
  You do NOT. The money is due April 30. Only the paperwork gets until June 15.

  [ ] Consider engaging a tax professional
  DIY: suitable if your situation is straightforward (sole prop, no employees, no GST/HST)
  Accountant: $200-$500 for a first T1 with T2125. Worth it for first year.
  WHERE TO FIND: CPA Canada directory, local referrals, NOT cold-pitch "tax refund" companies

  === DOLLAR SHOCK BOX: $80,000 NET INCOME, ONTARIO ===

  Federal income tax:          ~$12,500
  Ontario income tax:          ~$5,500
  CPP + CPP2:                  ~$8,000-$8,800
  Ontario Health Premium:      ~$600
  ─────────────
  TOTAL:                       ~$26,600-$27,400

  That's roughly $2,200/month you need in that "DO NOT SPEND" account.

  === 10 COMMON FIRST-YEAR MISTAKES (WITH COSTS AT $80k) ===

  1. Not setting aside tax money               $20,000+ surprise
  2. Not registering BN early                  Delays + missed ITC claims
  3. Missing GST/HST registration deadline     $1,500-$3,500 retroactive liability
  4. Ignoring instalment payments              $800-$1,200 interest + penalties
  5. Poor vehicle expense tracking             $1,500-$2,500 lost deductions
  6. Skipping home office deduction            $900-$1,750 lost deductions
  7. Misunderstanding CPP (budgeting 5.95%)    $4,430 shortfall
  8. Confusing filing vs payment deadlines     Interest from May 1
  9. Mixing personal and business accounts     $500-$1,500 in audit costs
  10. Not claiming CCA on equipment            $500-$1,000 lost deductions