Depending on your annual income, you may choose to be an employee or set-up your business as a sole proprietor or incorporation. Incorporating your independent contracting business could be a way of keeping more of your hard-earned money where it belongs: in your pocket. As a mid- to long-term strategy, incorporation can be very effective in deferring taxes and producing tax savings.
The decision to incorporate is about more than just number-crunching. How much personal income do you have from other sources? What is your personal commitment to contracting? What are your gross contracting revenues less expenses? What are your lifestyle spending patterns? Nothing can replace the advice of a good Chartered Professional Accountant, of course, each case is different and the tax laws and rates differ from province to province. But for those who do choose to incorporate, there are many generally accepted benefits.
Take a look at the following links for more tips and information on incorporating in your jurisdiction: