Starting to freelance in Canada as a newcomer involves setting up several systems that Canadian-born freelancers often take for granted — banking, registration, invoicing, and tax tools that work within the Canadian system. Here is a practical starter stack organized by the order you actually need each tool.
Step 1: Registration (Before First Invoice)
Business Name Registration (if using a trade name)
If you freelance under your legal name, no registration is needed. If you use a business name, register provincially:
- Ontario: Ontario Business Registry (ontario.ca/businessregistry) — $60, same-day online
- BC: BC Registry Services — $70 total
- Alberta: Authorized registry agent — ~$60–$80
CRA Business Number (for GST/HST)
Register free at canada.ca when approaching the $30,000 GST/HST threshold. All registrations now online through Business Registration Online (BRO) — phone registrations no longer accepted (since November 2025).
Step 2: Banking (Before First Client)
Business Bank Account
Open a dedicated business account from day one. This separates personal and business finances and makes tax time dramatically simpler. Options for newcomers:
- Wealthsimple Business: No monthly fees, 4% interest on deposits (promo may vary), Interac e-Transfer, fully online setup — best for newcomers without a credit history
- RBC, TD, Scotiabank: Traditional banks with business accounts — typically $10–$30/month, but often waived for the first year with referrals or promotions
- Credit unions (Desjardins, Meridian, Alterna): Often lower fees, newcomer-friendly, strong community banking culture
USD Account (If Billing US Clients)
Wise Business (wise.com): Canadian-registered entity, holds USD without conversion, accepts USD wire transfers, significantly lower conversion rates than Canadian bank USD accounts. Issued a CAD account number and USD account number from a single setup. Best option for freelancers with regular US clients who pay in USD.
Step 3: Invoicing and Accounting
Wave (Free) — Start Here
Wave handles invoicing, GST/HST tracking, expense categorization, and financial reporting at no cost. For most newcomer freelancers just starting out, Wave is the correct first accounting tool.
- Set up: go to waveapps.com, create account, enter your business name and province
- Configure sales tax (GST/HST) for your province under Settings → Taxes
- Connect your business bank account (free plan: manual import or upload CSV)
Upgrade to FreshBooks (~$25/month) When:
- You are regularly billing clients and want automatic payment reminders
- You track billable hours and want time tracking integrated with invoicing
- Your transaction volume makes manual bank imports a meaningful friction
Step 4: Tax Preparation
Wealthsimple Tax (Free)
For your T1 personal return with T2125 attached. Handles all standard self-employment deductions at zero cost. Use the CRA Auto-fill feature (connects to CRA My Account) to import T4, T5, and other slips automatically.
If your situation is complex in your first year (part-year Canadian residency, foreign income, tax treaty positions from your home country), budget $300–$600 for a CPA who specializes in newcomer taxation. This is genuinely worthwhile in year one to ensure your first Canadian return is correct — mistakes compound.
Step 5: International Payments (If Serving Foreign Clients)
- Wise Business: Best for receiving USD, EUR, GBP from international clients. Accepts SWIFT transfers and local payments, minimal conversion fees
- Stripe: Best if clients want to pay by credit card. Set up a Stripe account (available to Canadian residents), add a “Pay Now” button to Wave or FreshBooks invoices
- PayPal Business: Still used by many international clients, but higher fees than Wise or Stripe. Accept if clients prefer it; do not promote it as your primary option
Frequently Asked Questions
Do I need a Canadian credit card to use these tools?
No. Most software platforms accept international credit cards for Canadian subscriptions (Visa, Mastercard). Wave is free and requires no payment method. For bank accounts, Wealthsimple Business is the most accessible for newcomers without established credit history — it does not require a credit check.
Can I invoice in both CAD and USD?
Yes. Wave supports multi-currency invoicing on the free plan. FreshBooks supports it on Plus and above. QuickBooks Online supports it from Essentials upward. You invoice Canadian clients in CAD (adding appropriate HST/GST), and US clients in USD (zero-rated for GST/HST purposes). Keep records of the exchange rate used at time of payment for your T2125.
Is there a tool that handles GST/HST registration, bookkeeping, and tax filing all in one?
No single tool handles all three. GST/HST registration is done through the CRA’s BRO portal (free). Bookkeeping is Wave/FreshBooks/QuickBooks. Tax filing (T1 + T2125) is through Wealthsimple Tax or TurboTax. GST/HST return filing is through CRA My Business Account (or QuickBooks Online’s direct filing feature). These are separate systems run by the CRA and private software companies — they do not merge into one interface.