Once you start earning a certain level of income as an IT contractor, your accountant may recommend that it is time to incorporate your business. It brings a number of benefits, including some relief on taxes you pay to the government. When you take this step, it also opens up options on how you will pay yourself from the business -- as a salaried employee or through dividends as a business owner. Your decision ultimately depends on your individual circumstances, and your accountant can guide you on the right decision.
This video from Simplify Accounting will help you understand the differences and give you a base for that conversation you'll have with your accountant.