I've been pretty happy being a sole proprietor so far, and although I was aware of the benefits of being incorporated I was given advice not to worry about it until I was making more money than I was spending...basically a nod to protecting money taxation wise when my personal salary would start to jump up.
However, things have changed. A bulk of my work is done through staffing agencies, Saphire (formerly CNC Global) as the primary one. As of February 1st, they've changed their policy and only do two types of placements: Incorporated individuals or Term individuals. The problem is that even if you're a sole proprietor, you'd be placed as a term employee OF Saphire...meaning that in the government's eyes you aren't acting as an independant body; you're a temp employee of the staffing company.
So add to my plate this month going through the incorporation process...which should give way to some great blog posts at least. Some things that I'm needing to research:
- How to set up my own salary once my business is its own incorporation
- How to set up other employees of the business if I wanted to
- How to set up financial accounts since the incorporation is now separate from my own finances
- What do I need to do from a license perspective with the city, provincial government, and feds
And I'm sure many others. Stay tuned...