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Originally Posted by You Need a Thneed
I'm sure its in this thread already somewhere else - but what do I need to know about potentially taking contract work? setting aside money for taxes, Albert Blue Cross, setting up a entitity in order to get paid, can I pay my wife to do some accounting, etc?
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I believe you can do sole proprietorship up to a certain amount every year. I set up my own company right from the start as my BIL does such things for a living. Made it easy.
Yes, set aside money for taxes. Talk to an accountant on best way to "pay yourself". I have done dividends, management fee, and now salary. Depends on the situation. You will also need to collect and remit GST. I do mine quarterly. Do the math on Blue Cross, I may have looked at it wrong but I could never seem to get more out of it than I put into it. Which makes sense from a pooled risk point of view. So I set aside cash for dental/prescriptions and I bought extra life and disability insurance. I used to pay my wife, but you'd want to look into the latest income splitting rules.