01 · Continue
Continue operating
The corporation stays registered and active. Bookkeeping, GST/HST filings, and the annual T2 continue on the corporation's regular schedule, whether or not a new contract has started.
Ongoing compliance overview Between contracts
A contract ending does not end the corporation's obligations
When a contract winds up, the corporation itself does not go on pause automatically. Filing obligations, the GST/HST account, and corporate registry filings all continue until an active decision is made about what happens next.
What still applies
None of the following stops because the contract did. Each one keeps running on its own schedule until the corporation formally addresses it.
- 01 A T2 federal corporate return, and a CO-17 return in Quebec, is required for every tax year the corporation exists, regardless of whether it earned income that year
- 02 GST/HST registration does not pause on its own. Continuing to file, filing nil returns, or closing the account are each a decision that has to be made, not a default that happens automatically
- 03 Corporate registry filings, such as the federal or provincial annual return, continue on their own schedule and are separate from the corporation's tax filings
Two paths
Neither path is the default. The right one depends on whether contract work is expected to resume, what it takes to keep the corporation registered, and what is left in the corporate accounts.
02 · Wind down
Wind down
The corporation stops operating and moves toward dissolution. Final returns, account closures, and any distribution to shareholders are handled as part of the wind-down year.
Corporation wind-down overviewHow this works
Before any ongoing work begins, Teplov CPA reviews the corporation's filing history, GST/HST account, and corporate registry status through a New Client File Review. The review sets out what is outstanding and what is current before a proposal for ongoing work is put together, whether that means continuing operations or winding down.
The engagement runs through a dedicated client portal rather than email, the same as every other engagement.
Book a 15-minute introductionRelated guides
Detailed breakdowns of the decisions that come up when a corporation stops operating or considers continuing without a contract in place.
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Winding Down a CCPC: What IT Contractors Need to Know
A CCPC wind-down is more than closing CRA accounts. Retained earnings, RDTOH, and the clearance certificate all affect timing and tax.
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Shareholder Loan Account for Incorporated IT Contractors
Every draw and personal expense the corporation pays accumulates in the shareholder loan. A debit balance past the section 15(2) window is personal income.
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Quarterly Tax Instalments for Canadian IT Contractors
CRA charges interest on missed instalments even if you settle the full balance in April.
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GST/HST Registration for Canadian IT Contractors
Registration timing depends on whether the small-supplier threshold is exceeded in one quarter or over several quarters.
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Common questions
Q.01 Does the corporation have to file a T2 if it had no income this year?
Yes. With limited exceptions such as registered charities, every corporation has to file a T2 return for every tax year it exists, even if there is no tax payable and no activity to report. Inactive corporations can skip certain supporting schedules, but the return itself is still required.
Q.02 Can the GST/HST account just be left dormant instead of closed?
The account keeps requiring returns until it is formally closed with CRA. Filing nil returns is common for a corporation that expects to resume billing. Closing the account outright is a separate decision with its own requirements, including how long the corporation has been registered.
Q.03 Does a decision between continuing and winding down have to be made right away?
There is no fixed deadline that forces an immediate choice. What does not wait is the ongoing filing and registry schedule: the T2, GST/HST, and annual return obligations continue to come due while the decision is being considered.
Q.04 What happens if the corporate registry filings are missed?
Corporations Canada treats a corporation that stops filing its annual return as no longer operating and can move to dissolve it. Provincial registries generally follow a similar approach for corporations under their jurisdiction.
How engagements begin
- 01Book a 15-minute introduction call
- 02New Client File Review of your current filings and records
- 03Fixed-fee proposal based on what the review finds
Between contracts
Not sure whether to continue or wind down?
Describe the corporation's current status, whether a new contract is expected, and what filings are outstanding. Teplov CPA responds within one business day.