@SmallBizGuy
Strongly disagree.
As reported, this is not a case of “one spot or another”
The Corp is a completely different legal “persona” from any other businesses that the individual may or may not be engaging in, and completely different from the individual taxpayer.
As reported, the Corp grossly offends S230 by having zero books and records.
That is why it finds that it has both an accounting problem as well as a tax problem.
(Apparently the same problem that the proprietorship is experiencing)
This thread does not indicate a taxable income reporting problem, and has nothing to do with a “T2 problem”, but rather indicates a S230 problem.
Correcting the S230 issue will solve every concern raised here.
@joe.justjoe1 How do you arrive at the conclusion that he has no books or records for the Corporation or the Sole Prop. I think you are doing the same thing you accuse us of doing - reading between the lines. He has not opened his books to us. He asked if we have any suggestions as to which set of books he should be recording in under the circumstances he describes. It is not a T2 issue or an S230 issue at this point. 
I did not need to “conclude” anything - the original poster effectively stated that in the first post.
If it were not so, the original post would not exist, as he simply could have read the answers straight off them.
The only things mentioned were what external entities did, and there was no mention of the recording (in the books and records) of legal source documents in the actual subject legal entities.
Correcting the S230 issue will solve every concern raised here.
Energy directed in any different different direction would serve only as a source of entertainment…
I am not sure why there has been such a heavy and sustained resistance here to my suggestion that S230 should be complied with - it is hardly a revolutionary or novel concept… 
Problem is that some of us can’t read.
I would suggest reading up on the election.
Goodwill is fairly obvious as you must choose something that is between 4/3 of the CEC and the cost and is at least $1.
P.S. Note: “freelancing website/UpWork” sent invoices to clients issued From:
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my personal name (from Jan 2020 till mid of Oct 2020) and paid me to personal
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the corporation name (from mid of Oct 2020 ) & paid me to personal until mid Dec (opened company bank)
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the corporation name (from mid Dec 2020) and started paying me to company bank account
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Income, expenses and payments are all T2125 items
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Income is corporate, payments are Shareholder Draws - need to deal with Sec 85 to move assets into Corporation
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Income is corporate with appropriate expenses. When you take $$ out of corporate account to personal, it is T4 income and you should move the Shareholder Draws from #2 into your T4, remitting the proper CPP and tax as required.
This is a follow up to my earlier comment about filing an Election under 85(1.1) to transfer the Goodwill.
I filed this election in May 2020. The CRA just processed the election. Since I forgot to not the date of the election on the paperwork, they called for the date. (Jan 8, 2020 per the Shareholder’s Register.)
For those in the know, the date was chosen in case the paperwork wasn’t timely filed and could have incurred a penalty. In any case, for my example, if the date was in 2019, the due date would still have been after the date the paperwork was filed. So I was still in the clear.
But this suggests that the CRA has taken 8.5 months to process the paperwork.
Well, that’s speedier than in the 1990s…! Ouch.