01 · Resume
Resume operating
The corporation remains ready for active work. Once contracts and billing resume, bookkeeping, GST/HST filings, and the annual T2 continue on the corporation's operating schedule.
Specialist ongoing 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
Three paths
No path is automatic. The right one depends on whether contract work will resume, the corporation will remain inactive, or the accounts and entity should be closed.
02 · Remain inactive
Maintain the corporation
The corporation remains legally active but has no sales, payroll or operating activity. An eligible, current one-owner corporation can use SoloInc Hold for its routine annual compliance.
Review SoloInc Hold03 · 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
If the corporation is current and straightforward, compare SoloInc Complete for routine operating activity with SoloInc Hold for a genuinely inactive corporation. Both use a standardized recurring scope.
If filings are overdue, accounts are unresolved, the facts are non-routine, or dissolution is planned, Teplov CPA begins with an Initial Review and defines the specialist work required.
Compare SoloInc packagesRelated 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 Teplov CPA engagements begin
- 01Book a 15-minute introduction call
- 02Initial Review of your current filings and records
- 03Agree on scope and organize initial actions in the Client Workspace
Between contracts
Not sure whether to resume, remain inactive or wind down?
Use SoloInc Hold when an eligible inactive corporation is current and straightforward. Contact Teplov CPA when filings are overdue, accounts are unresolved or the corporation is moving toward dissolution.