Technically you can still claim the expenses incurred to operate your business but if you had no income at all it’s unlikely that you’ll have much in the way of expenses.

A business does not have to be profitable in order to claim the expenses and the loss from the current year can be used to offset future year earnings and reduce overall taxed payable.

The only thing to keep in mind is a business must have a reasonable expectation of earning a profit.

Also, year over year losses may make your file more likely to be pulled for audit.

Yes. No.

You still need to file taxes as a sole proprietorship, Form T2125, Statement of Business or Professional Activities.

After a certain number of years (i think 3 or 5), if you have not made a profit, the CRA can declare than your self-employment is really a hobby.