Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - Incorporating your self to become a contractor

V · 11-30-2007, 06:22 PM

I'm about to incorporate myself to start an engineering company on the side to complement my income. I'm guessing there are a couple extra things to look at here, including permit to practice and professional liability insurance. I have a couple questions:

How do you get paid, and how do you get taxed on that income? If I finish a project and receive payment from my customer (say $5,000) I'll get taxed on that money at a corporate tax rate, and then when I transfer money from the business to my personal account (or however that works) do I not have to pay personal income tax on that as well?

If I'm not planning on keeping more than a couple grand within the company at all times, is there any point in professional liability insurance? It's not like the company has any assets that I need to worry about losing.

11-30-2007, 06:22 PM	#17
V Franchise Player Join Date: Feb 2005 Exp:	I'm about to incorporate myself to start an engineering company on the side to complement my income. I'm guessing there are a couple extra things to look at here, including permit to practice and professional liability insurance. I have a couple questions: How do you get paid, and how do you get taxed on that income? If I finish a project and receive payment from my customer (say $5,000) I'll get taxed on that money at a corporate tax rate, and then when I transfer money from the business to my personal account (or however that works) do I not have to pay personal income tax on that as well? If I'm not planning on keeping more than a couple grand within the company at all times, is there any point in professional liability insurance? It's not like the company has any assets that I need to worry about losing.