Search results

@sugarplum1 But essentially the money is getting taxed twice then. I haven’t done the math on the difference on the net between the two, but that would mean your pay is getting taxed as corporate income via your corporation, then again as personal income tax when you file your return. So not...

@galations322 Yes, but then any money he makes is taxed twice (as corporate income tax, then as his personal income tax). And at that point, why not just be an employee of the actual company you’re working for?

@galations322 That still depends on whether or not this employer has a Canadian arm or owns property in Canada. Suppliers don’t have to charge GST on services they perform totally outside of Canada, but whether or not that’s the case for OP depends on other factors too. We’re talking about 2...

@galations322 If you take money from the corp via dividends, you are personally liable for tax debt, etc. Doesn’t matter what else you do. Not to mention that technically any of these ‘contractor’ options would require OP to have a GST account since >$30k/yr in earnings means that you’re a...

@galations322 Via dividends? That opens him up to personal liability, which is what I said.

@galations322 In what way is the corporation an RRSP? The corporation is the contractor in your scenario, not OP. OP is the director and sole shareholder of the corporation, and still has to file his personal taxes. Keeping in mind as well that OP would need to pay himself from the corporation...

@mack77 Also, do we even know that the employer is willing to extend the offer to a corporation? There’s no mention of that in OP’s post. A corporation is a separate legal entity from OP so the employer would need to make an offer to, make payments to, etc, the corporation and not OP.