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Setting yourself up as a company

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Any tips? Did you use snap incorporations? I'm thinking of doing the same for next season, but a friend of mine with more business savvy told me it wasn't really worth incorporating unless you are mid to high 6 figures.

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Contract rates will have to be higher than employee salary rates. You're paying both sets of taxes.

You will have to pay corporate taxes, taxes on company revenue, and all employer deductions, such as EI.

Then you pay employee wages, and from that, deduct income tax.

If your contract rate isn't much higher than the employee salary, it's not worth it. The contract rate must be higher for this to be worth it.

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3 hours ago, ray said:

Contract rates will have to be higher than employee salary rates. You're paying both sets of taxes.

You will have to pay corporate taxes, taxes on company revenue, and all employer deductions, such as EI.

Then you pay employee wages, and from that, deduct income tax.

If your contract rate isn't much higher than the employee salary, it's not worth it. The contract rate must be higher for this to be worth it.

You will also need to include paying WCB in whatever provinces you work. You get hurt or God forbid worse you wont be covered on the company plans for WCB and Insurance.

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I went into the registry office in Nova Scotia and did it all myself, incorporated for around $300 all in.  Accountant will sort the rest.  Covered on the company plan.  Rate is very good.  There is no salary with these lads, they only hire contractors (overseas).

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I've set myself up with a company for doing the odd side gig/relief work.  Very simple in Alberta, did it all at a registry.  All in with the accounting software (online) for about $500.  Accountants do most of the heavy lifting but now I have a numbered company setup to do any side work (I do sideline IT consulting, etc.)

For minimal overhead I'd say it's worth it, however, I don't use it as my primary income so your mileage may vary.

All the best!

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13 hours ago, just looking said:

You will also need to include paying WCB in whatever provinces you work. You get hurt or God forbid worse you wont be covered on the company plans for WCB and Insurance.

In BC, WCB is covered by the employer if you are the lone employee of your contracting company, and provide only labour to the employer.

The employer provides coverage for any employee in their facility, regardless of your pay structure.

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2 hours ago, ray said:

In BC, WCB is covered by the employer if you are the lone employee of your contracting company, and provide only labour to the employer.

The employer provides coverage for any employee in their facility, regardless of your pay structure.

True in most provinces. Except quebec and the territories.  Nwt has resonable rates. Pay what you think you will make in a time period. BC does it the easy way. And you cant even get it if it is only you.

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Just now, displayname said:

True in most provinces. Except quebec and the territories.  Nwt has resonable rates. Pay what you think you will make in a time period. BC does it the easy way. And you cant even get it if it is only you.

I have been contract for a number of years.  I would almost everytime have an email or letter to make sure the company and you are covered.  Never know

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3 hours ago, displayname said:

True in most provinces. Except quebec and the territories.  Nwt has resonable rates. Pay what you think you will make in a time period. BC does it the easy way. And you cant even get it if it is only you.

Yes you can. My company requires WCB clearance letters from individual contractors yearly....most of whom have their companies registered in BC. We cover individual contractors on our regular insurance, but not for their WCB coverage.

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32 minutes ago, simpleton said:

Yes you can. My company requires WCB clearance letters from individual contractors yearly....most of whom have their companies registered in BC. We cover individual contractors on our regular insurance, but not for their WCB coverage.

Workers compensation act AP1-1-1 THROUG-6.

If you are a contractor and dont have employees or work for multiple companies at one time.  Then you are  considered personal services. And is not eligible for wcb.

As a result. Your personal company is covered by the hiring company.

If you are soleperson doing summer work.

It is the employer.

Ive have gotten private insurance zthrough van city.  But it is bucks.

 

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