Quote:
Originally Posted by guzzy
If it is just a contract position she can probably start as a sole proprietor and then decide if she wants to set up an incorporated company. The write-offs aren't quite as good but it is a good start to see if she likes being on her own.
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That has always be the case but the rule change 2 years ago made it very punitive to get caught.
To safe guard this, the contractor who might be considered PSB by CRA must take out all profits as salary and writes themselves a T4 for those amount. Meaning, no profits are left in the corp and no dividend possible.