Accounting requirements for a new business in Quebec: The 2026 checklist

At a Glance. A new business in Quebec must, starting in its first year: obtain its NEQ from the Registraire des entreprises, maintain accounting records and retain supporting documents for 6 years, register for the GST (5%) and the QST (9.975%) with Revenu Québec as soon as its taxable sales exceed $30,000, and then file its tax returns: T1 and TP1 for a self-employed individual, T2 and CO-17 for a corporation. Once the first employee is hired, source deductions are added. Most founders hire their first accountant around one of these thresholds, with a median budget of about $3,000 per year, according to the Bankeo Fee Barometer. All amounts are in Canadian dollars.

Starting a business in Quebec means dealing with two tax authorities from day one, the Canada Revenue Agency (CRA) and Revenu Québec, as well as the Registraire des entreprises. Each requirement comes into effect at its own time: some apply on Day 1, while others are triggered once a specific sales threshold is reached or when you hire your first employee. This 2026 checklist organizes them in chronological order and, most importantly, indicates when it becomes worthwhile to team up with your first accountant: the threshold chart that Bankeo has applied to startup applications it has received since 2023. For a detailed look at the tax aspects, our GST/QST Guide for Businesses in Quebec Complements this article.

Registration and structure: Where to start on day 1?

Even before you issue your first invoice, two decisions will shape everything that follows: your business’s legal structure and its registration. These determine which filings you’ll need to submit, to whom, and by when.

• Sole Proprietorship. This is the simplest form: you and the business are one and the same. Your business income is reported on your personal tax return (T1 at the federal level, TP1 in Quebec, with forms T2125 and TP-80). If you operate under your exact first and last name, registration with the Registrar is optional; if you operate under any other name, registration is mandatory within 60 days of starting operations.
• Corporation. Whether incorporated in Quebec (under the Corporation Act) or federally, the company becomes a separate taxpayer: it files its own T2 return with the CRA and CO-17 return 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 provides you with a Quebec Business Number (NEQ). At the federal level, the CRA assigns a Business Number (BN) linked to program accounts: GST, payroll deductions, and corporate income tax.
• Annual update. Every registered business must file an annual update with the Registraire des entreprises; failure to do so may result in penalties and, ultimately, deregistration.

The choice between a sole proprietorship and a corporation isn’t just an administrative one: it affects your tax bill, your liability, and your compensation (see our article Salary or Dividends for Executives in Quebec). This is the first threshold where spending an hour with a vetted accountant can prevent you from making a costly decision that you’ll later have to undo.

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

When it comes to sales taxes, Quebec applies the 5% federal GST and the 9.975% QST, 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 GST and QST paid on your business expenses through ITCs and ITRs. Voluntarily registering before reaching the threshold can actually be cost-effective if your startup expenses are high.

When it comes to income tax, the timeline depends on your business structure. Self-employed individuals must file their T1 and TP1 forms by June 15 at the latest, but any tax balance is due by April 30. Corporations must file their T2 and CO-17 forms within six months of the end of their fiscal year, and their tax balance is generally due within two or three months, depending on their situation. Starting in the second year, tax instalments may be required for both income tax and GST/QST. Here is the complete checklist, in chronological order.

Bookkeeping, supporting documents, and your first employee: What to keep, what to file?

The law does not require specific software or methods, but it does require a specific outcome: complete accounting records, supported by supporting documents, that allow the CRA and Revenu Québec to verify your income, expenses, and taxes. Starting with your very first transaction, make it a point to follow these three practices.

• Keep your accounts separate. A separate business bank account from day one: this is the foundation of proper bookkeeping and the first thing an accountant will ask you for.
• Keep everything on file for 6 years. Invoices, statements, contracts, tax records: The general rule is 6 years after the end of the last applicable tax year. Details by document type are in our guide to Supporting Documents to Keep in Quebec.
• Stay on track every month. An hour or two of monthly bookkeeping always costs less than a year-end catch-up billed at an hourly rate.

Hiring your first employee triggers a second set of obligations: source deductions. With each pay period, you withhold federal income tax and Employment Insurance premiums to be remitted to the CRA, as well as Québec income tax, QPP contributions, and QPIP contributions to be remitted to Revenu Québec, which also collects your employer contributions to the HSF and the CNESST premium. The standard frequency for a new small employer is a monthly remittance, due no later than the 15th of the following month, and every February you file your employees’ T4 slips and RL-1 slips. A late payment of source deductions is one of the penalties that can be imposed most quickly: this is typically the task you entrust to your accountant or payroll service before the first payday, not after.

When should you hire your first accountant? Bankeo’s thresholds

The real question isn’t “Do you need an accountant?” but “When?” Since 2023, Bankeo has received more than 15,000 requests for matching, a large portion of which came from startups, and the finding is consistent: those who partner up at the right threshold pay less for their accountant than those who wait until they fall behind. Here is the recommended threshold chart, with each trigger corresponding to a specific requirement on the checklist above.

If several of these thresholds already sound familiar to you, our article on Signs It’s Time to Hire an Accountant in Quebec takes the assessment a step further. The idea remains the same: every threshold crossed without guidance will cost you later, in the form of penalties, unclaimed credits, or hours spent catching up.

How much does an accountant cost for a new business?

For a startup business in Quebec, the median cost is around $3,000 per year, and most engagements range from $500 to $6,000 depending on the scope of services: tax returns only, monthly bookkeeping, payroll, and incorporation assistance. These figures are based on actual fees from 1,248 engagements completed through Bankeo (2024-2026), out of more than 15,000 requests received; the Bankeo Fee Barometer breaks down these fees by service and business profile. You can also browse the Vetted accountants in the Bankeo network to compare profiles, including several CPAs who are members of the Ordre des CPA du Québec.

Frequently asked questions

What are the accounting requirements for a new business in Quebec?

From the First Year: registration with the Registraire des entreprises (NEQ) when required, bookkeeping and retaining supporting documents for 6 years, registering for the GST and QST with Revenu Québec as soon as taxable sales exceed $30,000, and then filing tax returns: T1 and TP1 for a self-employed individual, T2 and CO-17 for a corporation. If you have employees, you’ll also need to file source deductions returns (source deductions) and issue T4 and RL-1 statements.

Do you need to register for the GST/QST right 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’re considered a small supplier, and registration is optional, though it can be beneficial: once registered, you can recover the GST/QST paid on your startup expenses through the ITC and ITR credits. In Quebec, registration is handled by Revenu Québec, which administers both taxes.

What’s the difference between a sole proprietorship and a corporation for tax purposes?

A sole proprietorship is one and the same as you: its income is included in your personal T1 (CRA) and TP1 (Revenu Québec) tax returns, which must be filed by June 15 at the latest, with any balance due by April 30. A corporation is a separate taxpayer: it files its own T2 return with the federal government and CO-17 return with Revenu Québec within six months of the end of its fiscal year, and its tax balance is generally due within two or three months, depending on its circumstances.

How long should you keep your supporting documents?

The general rule is 6 years after the end of the last tax year to which the documents relate, for both the CRA and Revenu Québec. This includes sales and purchase invoices, bank statements, GST/QST 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?

Thresholds that trigger new obligations: before choosing between a sole proprietorship and a corporation, around $25,000 in cumulative sales (before the $30,000 GST/QST threshold), within the first 90 days of incorporation, before an employee’s first paycheck, or immediately if bookkeeping is three months or more behind. Getting organized before the threshold is almost always less expensive than catching up afterward.

How much does an accountant cost for a new business in Quebec?

The median fee is around $3,000 per year, and most engagements range from $500 to $6,000 depending on the services provided: tax returns, bookkeeping, payroll, and incorporation assistance. These figures are based on actual fees from 1,248 engagements completed through Bankeo (2024-2026), out of more than 15,000 requests received. The Bankeo Fee Barometer breaks down these fees by service, and matching clients with a vetted accountant from the network is free and requires no commitment.

Official sources

1. Revenu Québec, GST and QST Registration
2. Revenu Québec, Employer Withholdings and Contributions
3. Canada Revenue Agency, Corporate Income Tax
4. Canada Revenue Agency, Bookkeeping
5. Ordre des CPA du Québec, Public Protection