An independent contract conducts business through his/her corporation. A corporation is a legal entity, with or without shareholders, that is considered separate from its owners. A corporation is created when properly completed Articles of Incorporation are filed with the appropriate government office, and all fees are paid. Activities of a corporation will generally be regulated by the law of the province in which the corporation operates. As an “artificial person”, the corporation's debts and taxes are separate from its owners and/or shareholders. Corporations offer the greatest personal liability protection of all types of business structures. Canadian corporations must pay taxes and file income tax returns with the Canada Revenue Agency and Provincial Ministry of Finance.

If you are an incorporated contractor, you are required to remit your own employee and employer shares of CPP or QPP contributions and EI premiums to Canada Revenue Agency. Your customers are not required to pay for statutory holidays or vacation time.

The above information is provided "as-is" without warranty of any kind. To learn more about your obligation as a permanent Employee, please visit Canada Revenue Agency’s website.