We can pay you as an individual or a corporation. Find out about the latter in this article.
Billing With a Business Name or Your Legal Name
Any one of our independent contractors has the ability to bill us under their corporation and legal business name, as a mechanism to save on costs related to temporary or relief work. If you choose not to use a business name, we’ll be happy to process your cheque as a sole proprietor and have it issued under your legal name. However, operating as an independent contractor with a corporation comes with a number of benefits which I will go into further detail to explain.
Offset Your Expenses
Those who choose to do work as contractors are given the ability to offset expenses that might be accumulated during the course of the year. For employees who have a direct relationship with their employers, this benefit doesn’t exist. Therefore, any cost, even maintaining the lab coat you wear to work, can be used to contribute and offset your income taxes during tax season.
There are plenty of relatable expenses that an independent contractor can incur from doing business. Anything from the smallest tools related to your business, to fuelling and operating your vehicle can be used to offset the income taxes you pay at the end of the year. For those interested in taking this course of action, you can be sure to bring up this idea with your financial institution or advisor to see if this is a recommended course of action you should take. If you do decide to claim expenses, it’s vital that you keep all of your receipts. These receipts are proof of your expenses, should you ever be audited by Canada Revenue Agency.
Should You Register Your Business?
For those who are interested in securing full time employment but choose to do temporary work in the meantime, establishing a business name might not be in your best interest if you don’t end up taking full advantage of its benefits. Establishing a business does come with its costs, so it’s up to you to weigh the benefits and see if its your best option while working with us!