Accounting obligations of a new business in Quebec: the 2026 checklist

En bref. Une nouvelle entreprise au Québec doit, dès sa première année : obtenir son NEQ auprès du Registraire des entreprises, tenir des livres comptables et conserver ses pièces justificatives pendant 6 ans, s'inscrire à la TPS (5 %) et à la TVQ (9,975 %) auprès de Revenu Québec dès que ses ventes taxables dépassent 30 000 $, puis produire ses déclarations de revenus : T1 et TP1 pour un travailleur autonome, T2 et CO-17 pour une société. Avec un premier employé s'ajoutent les retenues à la source (DAS). La plupart des fondateurs se jumellent à leur premier comptable autour de l'un de ces seuils, pour un budget médian d'environ 3 000 $ par année selon le Baromètre Bankeo. Tous les montants sont en dollars canadiens.

Starting a business in Quebec means dealing with two tax authorities from day one: the Revenue Agency and the... Canada (CRA) and Revenu Québec, plus the Registrar of Enterprises. Each obligation comes at its own time: some apply from day one, others are triggered by a specific sales threshold or the first hire. This 2026 checklist lists them in chronological order and, most importantly, indicates when it becomes worthwhile to partner with your first accountant: the threshold grid that Bankeo applies to start-up applications it has received since 2023. For detailed information on taxes, our VAT guide for businesses in Quebec complements this article.

Registration and structure: where to start on day 1?

Even before the first invoice, two decisions structure everything else: the legal form of your business and its registration. These determine the declarations you will make, to whom, and by when.

• Sole proprietorship. This is the simplest form: you and the business are one. Your business income is added to your personal tax return (T1 federally, TP1 in Quebec, with schedules T2125 and TP-80). If you operate under your exact first and last name, registration with the Registrar is optional; under any other name, it is mandatory within 60 days of starting operations.
• A corporation incorporated in Quebec (Business Corporations Act) or federally becomes a separate taxpayer: it files its own T2 return with the CRA and CO-17 with Revenu Québec. A corporation incorporated in Quebec is automatically registered; a federal corporation operating in Quebec must register with the Registrar within 60 days.
• NEQ and NE. Registration gives you the Quebec Enterprise Number (NIQ). At the federal level, the CRA assigns a business number (NE) to which program accounts are linked: VAT, payroll deductions, corporate income tax.
• Annual update. Every registered company must file an update declaration with the Registrar every year, under penalty of fines and, eventually, deregistration.

The choice between sole proprietorship and company structure isn't just administrative: it affects your tax bill, your liability, and your compensation (see our article on salary or dividends for business owners in France ). This is the first hurdle where an hour with an audited accountant can prevent a costly decision from being reversed.

What are the tax obligations from the first year? CRA and Revenu Québec;

Regarding sales taxes, Quebec applies the federal 5% VAT and the QST (Quebec Sales Tax) of 9.975%, both administered by Revenu Québec: a single registration, a single combined return. The small supplier rule applies: registration becomes mandatory as soon as your taxable sales exceed $30,000 over four consecutive calendar quarters, or in a single quarter. Once registered, you charge both taxes, then recover the VAT paid on your business expenses through input tax credits (ITCs) and input tax refunds (ITRs). Registering voluntarily before the threshold can also be advantageous if your start-up expenses are high.

Regarding income tax, the schedule depends on your business structure. Self-employed individuals file their T1 and TP1 slips by June 15th, but any tax balance is due by April 30th. Corporations file their T2 and CO-17 slips within six months of their fiscal year-end, and their tax balance is generally payable within two to three months, depending on their situation. Starting in the second year, instalment payments may be added for both income tax and GST/QST. Here is the complete checklist, in chronological order.

Bookkeeping, supporting documents and first employee: what to keep, what to hand over?

The law doesn't mandate specific software or methods, but it does require a specific outcome: complete accounting records, supported by documentation, that allow the IRS and tax authorities to verify your income, expenses, and taxes. From your very first transaction, adopt three habits.

• Keep your accounts separate. A separate business bank account from day one: this is the basis of clean bookkeeping and the first thing an accountant will ask you for.
• Keep everything for 6 years. Invoices, statements, contracts, tax records: the general rule is 6 years after the end of the last tax year in question. Details for each type of document can be found in our guide to supporting documents to keep in Quebec .
• Keep up the pace each month. An hour or two of monthly filing is always cheaper than a year-end catch-up billed at an hourly rate.

The first hire triggers a second set of obligations: source deductions. With each paycheck, you withhold federal income tax and Employment Insurance premiums to be remitted to the CRA, then Quebec income tax, QPP and QPIP contributions to be remitted to Revenu Québec, which also collects your employer contributions to the FSS and the CNESST premium. The usual frequency for a new small employer is monthly remittance, no later than the 15th of the following month, and every February you issue your employees' T4 slips and Relevé 1 slips. A late remittance of source deductions is one of the quickest penalties to be incurred: this is generally a task assigned to your accountant or payroll department before the first paycheck, not after.

When to join your first accountant? Bankeo thresholds

The real question isn't "Do I need an accountant?" but "When?" Since 2023, Bankeo has received over 15,000 matching requests, a large proportion of which come from startups, and the observation is consistent: those who match at the right threshold pay their accountant less than those who wait until they catch up. Here is the threshold table we recommend, with each trigger corresponding to a specific requirement on the checklist above.

If several of these thresholds already resonate with you, our article on the signs that it's time to hire an accountant in Quebec takes the diagnosis a step further. The idea remains the same: each threshold crossed without guidance will be paid for later, in the form of penalties, unclaimed credits, or catch-up hours.

How much does an accountant cost for a new business?

Pour une entreprise en démarrage au Québec, la médiane se situe autour de 3 000 $ par année, et la plupart des mandats vont de 500 à 6 000 $ selon l'étendue des services : déclarations seules, tenue de livres mensuelle, paie, accompagnement à l'incorporation. Ces chiffres sont basés sur les honoraires réels de 1 248 mandats conclus via Bankeo (2024-2026), sur plus de 15 000 demandes reçues; le Baromètre Bankeo ventile ces honoraires par service et par profil d'entreprise. Vous pouvez aussi parcourir les comptables vérifiés du réseau Bankeo pour comparer les profils, dont plusieurs CPA membres de l'Ordre des CPA du Québec.

Frequently asked questions

What are the accounting obligations of a new company?

From the first year: registration with the Registrar of Enterprises (NEQ) when required, bookkeeping with retention of supporting documents for 6 years, VAT registration with Revenu Québec as soon as taxable sales exceed $30,000, then income tax returns: T1 and TP1 for a self-employed individual, T2 and CO-17 for a corporation. In addition to employees, there are payroll deductions (DAS) and T4 and Relevé 1 slips.

Do you need to register for VAT from the start?

No, not necessarily. Registration becomes mandatory when your taxable sales exceed $30,000 over four consecutive calendar quarters, or in a single quarter. Below this threshold, you are considered a small supplier and registration is optional, but it can be advantageous: once registered, you can recover the VAT paid on your start-up expenses through input tax credits (ITCs) and input tax refunds (ITRs). In Quebec, registration is done with the Canada Revenue Agency, which administers both taxes.

What is the difference between a sole proprietorship and a public limited company with regard to taxation?

A sole proprietorship is considered one with you: its income is added to your personal T1 (CRA) and TP1 (Revenu Québec) tax returns, due by June 15, with the balance due on April 30. A corporation is a separate taxpayer: it files its own T2 federal return and CO-17 return in Quebec within six months of its fiscal year-end, and its tax balance is generally payable within two or three months, depending on its circumstances.

How long should you keep your supporting documents?

The general rule is six years after the end of the last tax year to which the documents relate, for both the CRA and Revenu Québec. This covers sales and purchase invoices, bank statements, VAT records, payroll records, and contracts. Digital formats are accepted, provided the documents remain legible and accessible in the event of an audit.

When should you hire your first accountant when starting a business?

At the thresholds that trigger a new obligation: before choosing between a sole proprietorship and a company, around €25,000 in cumulative sales (before the €30,000 VAT threshold), within the first 90 days of incorporation, before the first employee's payroll, or immediately if bookkeeping is 3 months or more behind. Forming a partnership before the threshold is almost always cheaper than catching up afterward.

How much does an accountant cost for a new business?

La médiane se situe autour de 3 000 $ par année, et la plupart des mandats vont de 500 à 6 000 $ selon les services : déclarations, tenue de livres, paie, accompagnement à l'incorporation. Ces chiffres sont basés sur les honoraires réels de 1 248 mandats conclus via Bankeo (2024-2026), sur plus de 15 000 demandes reçues. Le Baromètre Bankeo ventile ces honoraires par service, et le jumelage avec un comptable vérifié du réseau est gratuit et sans engagement.

Official sources

1. Revenu Québec, VAT Registration
2. Revenu Québec, Employer deductions and contributions;
3. Revenue Agency of the | Canada Corporate Income Tax
4. Revenue Agency of the | Canada , Maintaining accounting records;
5. Quebec CPA Order, protecting the public;