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Incorporating in Canada as a Contractor: Pros, Cons, and Financial Mistakes to Avoid in 2025
Should you incorporate in Canada as a contractor? - All your questions answered!
Deciding whether to incorporate your contracting business in Canada can be challenging, with so much conflicting advice online. This video provides a clear, expert-driven breakdown to help you decide if incorporation is right for you. We compare incorporation with sole proprietorships, exploring critical factors like liability protection, ownership control, and financial advantages.
Here’s what we’ll cover:
➡️ Should you incorporate your contracting business in Canada?
➡️ Pros and cons of incorporating versus remaining unincorporated.
➡️ Factors to consider when deciding on business structure.
➡️ Key differences between sole proprietorship and incorporation in managing your business.
What You’ll Learn:
➡️ How liability differs between incorporated and unincorporated contractors.
➡️ Financial perks of incorporation, including access to loans and investors.
➡️ A cost breakdown of setup and ongoing expenses for each structure.
➡️ Expert tips on choosing the best structure for your contracting business in Canada.
Watch Now and Learn More!
Whether you’re an IT consultant or an electrician, this video equips you with the knowledge to make informed decisions about your business structure.
******************************
🔗 Mentioned in This Video
► Sole Proprietorship vs. Incorporation: Key Business Differences
th-cam.com/video/qU0sqVcS9hw/w-d-xo.html
Tax Implications: Sole Proprietorship vs. Incorporation
th-cam.com/video/KBMrwO12Gok/w-d-xo.htmlsi=_gnD5Tw6q80pPiZ4
◼️ Filing Taxes as an Incorporated Contractor
instaccountant.com/how-to-file-taxes-incorporated-contractors-canada/
******************************
If you have questions or need assistance, leave a comment below, and we’ll be glad to help!
******************************
📽️ Video Chapters
00:00 - Introduction
00:15 - Personal Assets and Liability Protection
04:44 - Business Ownership Structure
07:04 - Growth and Scalability Benefits
07:55 - Financial Advantages of Incorporation
11:37 - Startup Costs: Incorporation vs. Sole Proprietorship
13:52 - Final Thoughts: Incorporate or Stay Sole Proprietor
******************************
Hello from Instaccountant! 🌟 We are your trusted online tax accountants in Toronto, specializing in services for incorporated contractors, gig workers, and small businesses across Canada and the USA.
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📩 CONNECT
► Website: instaccountant.com/
► Blog: instaccountant.com/blog/
► Facebook: / instaccountant
► Instagram: / instaccountant
► LinkedIn: / instaccountant
******************************
Disclaimer: This video is for informational purposes only and should not be taken as tax, legal, or financial advice. Always consult a professional for personalized guidance.
มุมมอง: 122

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ความคิดเห็น

  • @robirajan
    @robirajan 12 ชั่วโมงที่ผ่านมา

    Thanks for the info. Can you confirm over what amount of income would you suggest to go for Incorporation as compared to Self employed. Just a general ball park range.

  • @HowarAchitoVergara-k9y
    @HowarAchitoVergara-k9y 3 วันที่ผ่านมา

    What about the skip the dishes driver we don’t do billing to the customer ?

    • @instaccountant
      @instaccountant 3 วันที่ผ่านมา

      Register for a GST/HST account and provide your GST/HST number to Skip to collect and remit GST/HST.

  • @JamesDeen-j6b
    @JamesDeen-j6b 7 วันที่ผ่านมา

    So grateful. I'm starting a corporation and I really don't want to make these mistakes. This is such great content, easy to understand. Thank you for making this video.

    • @instaccountant
      @instaccountant 5 วันที่ผ่านมา

      Keep watching and subscribe!

  • @jo-hm9pr
    @jo-hm9pr 12 วันที่ผ่านมา

    I need hst registration for uride, will you do the service? How many days will it take? Cost?

    • @instaccountant
      @instaccountant 5 วันที่ผ่านมา

      You need to contact CRA for HST registration; we can assist with filing once registered.

  • @MohamedAliAhamedMansoor
    @MohamedAliAhamedMansoor 14 วันที่ผ่านมา

    You explained about the tax system extraordinarily well. Thank you!

  • @SaeedKhan-np2wo
    @SaeedKhan-np2wo 16 วันที่ผ่านมา

    If I bought a car from dealership to driver for Uber can I claim ITC on the purchase price of the car? Thank you so much for the advice.

    • @instaccountant
      @instaccountant 15 วันที่ผ่านมา

      Yes you can, up to the limit and for the business portion.

    • @SaeedKhan-np2wo
      @SaeedKhan-np2wo 15 วันที่ผ่านมา

      @ thank you! :) Does it change if I don’t drive next year? Do I’ve to payback the claimed ITC?

    • @instaccountant
      @instaccountant 14 วันที่ผ่านมา

      @@SaeedKhan-np2wo You may need to repay some or all of the claimed ITC based on the change in usage.

  • @nofuss3947
    @nofuss3947 17 วันที่ผ่านมา

    Great video, glad I found your channel! I'm also an IT contractor. Please do a video on capital dividends account when investing in a corporation.

    • @instaccountant
      @instaccountant 15 วันที่ผ่านมา

      Thanks for the kind words! Your suggestion is definitely a valuable topic, and I’ll make sure to explore it ASAP. Happy contracting, and subscribe!

  • @sidhantbhadauria5203
    @sidhantbhadauria5203 21 วันที่ผ่านมา

    How much lease can be deducted lets say if its $500 ?

    • @instaccountant
      @instaccountant 20 วันที่ผ่านมา

      This video might help th-cam.com/video/jvw7Qp4sNC4/w-d-xo.htmlsi=evu5d5WzQ5plj8U0

  • @purbaprintingsigns7959
    @purbaprintingsigns7959 27 วันที่ผ่านมา

    Thank you sir for this infromations, now im going to first time filling HST No for bnew corportionso which income i have to show in the tax retun?

    • @instaccountant
      @instaccountant 14 วันที่ผ่านมา

      Report the total sales (revenue) generated from taxable goods and services during the reporting period.

  • @pradeepchandrasekara642
    @pradeepchandrasekara642 หลายเดือนก่อน

    Which insurance company allowing vehicle' personal auto insurance for use it for uber?

    • @instaccountant
      @instaccountant 14 วันที่ผ่านมา

      Choose an insurance provider that offers rideshare endorsements.

  • @sameerabdul2416
    @sameerabdul2416 หลายเดือนก่อน

    Hey why don't stop doing uber job?

    • @instaccountant
      @instaccountant 14 วันที่ผ่านมา

      What’s been the biggest challenge for you?

  • @nirvanacobain001
    @nirvanacobain001 หลายเดือนก่อน

    Hey. The problem with food delivery apps, there is no way to collect gst on that as a contractor. How to proceed to do that with doordash for example ? I'm looking up this topic for decades and I can't find any response on it.

    • @instaccountant
      @instaccountant 14 วันที่ผ่านมา

      Register for a GST/HST account and provide your GST/HST number to DoorDash to collect and remit GST/HST.

  • @shantayemak2061
    @shantayemak2061 หลายเดือนก่อน

    Thanks so the detailed info. Question, if both my spouse and I drive for uber, would it more beneficial (for tax purposes) to register as 1 corporation with 2 owners, or to have 2 separate corporations? Thanks again

    • @instaccountant
      @instaccountant 20 วันที่ผ่านมา

      Your questions is confusing. Firstly, you should know why having a corporation as Uber driver is a good tax decision. Secondly, in general having two corporations should give more tax benefit. I would advise to get pro help before incorporating.

  • @YourHost0510
    @YourHost0510 หลายเดือนก่อน

    Thank you very much for the content, very insightful. One question for the bookkeeping for the expenses for the 6 years, should it be physical or the digital copies are okey?

    • @instaccountant
      @instaccountant หลายเดือนก่อน

      Digital copies are acceptable; use Zoombooks to save receipts.

  • @joejep5631
    @joejep5631 หลายเดือนก่อน

    Thanks for the video. One side I am a Uber driver and other side I have incorporated it contract business. How will the tax situation be for me. Please guide. Thanks in advance

    • @instaccountant
      @instaccountant หลายเดือนก่อน

      2 tax returns to be filed. You will file tax return for the corporation. Personal tax return will be filed with Uber income and any income you got from the corporation.

    • @joejep5631
      @joejep5631 22 วันที่ผ่านมา

      Thanks for your reply. Keep up your good work!

    • @instaccountant
      @instaccountant 22 วันที่ผ่านมา

      @@joejep5631 Keep watching and subscribe

  • @AbetTorontoAdventure
    @AbetTorontoAdventure หลายเดือนก่อน

    I do skip the dishes and uber ride. Do I need to include my skip the dishes income when filing for HST returns or just uber ride since I don't collect HST on Skip the dishes.

    • @instaccountant
      @instaccountant หลายเดือนก่อน

      Yes, you'll need to include your income from both.

    • @AbetTorontoAdventure
      @AbetTorontoAdventure หลายเดือนก่อน

      @@instaccountant I'm not talking about the Yearly Tax return it's just the HST returns..

    • @instaccountant
      @instaccountant หลายเดือนก่อน

      @@AbetTorontoAdventure YES, from both

    • @AbetTorontoAdventure
      @AbetTorontoAdventure หลายเดือนก่อน

      @@instaccountant Thank you.

    • @instaccountant
      @instaccountant หลายเดือนก่อน

      @@AbetTorontoAdventure Keep watching for useful information. Subscribe

  • @annam6281
    @annam6281 หลายเดือนก่อน

    is there any limit on how much you can deduct to a mobile phone if it was bought for Uber and my own purposes, or I can deduct 100% at once?(price 300 USD)

    • @instaccountant
      @instaccountant หลายเดือนก่อน

      You can only deduct the business-use percentage.

  • @annam6281
    @annam6281 หลายเดือนก่อน

    Hello.How to divide fuel consumption especially for Uber if I use a car for personal purposes as well?

    • @instaccountant
      @instaccountant หลายเดือนก่อน

      Track mileage and apply your business-use percentage for a tax-deductible amount.

  • @khoods
    @khoods หลายเดือนก่อน

    When will you create video on tax savings?

    • @instaccountant
      @instaccountant 14 วันที่ผ่านมา

      This video might help: th-cam.com/video/KBMrwO12Gok/w-d-xo.html

  • @seanwilley1524
    @seanwilley1524 หลายเดือนก่อน

    Excellent info and thanks for the positive presentation!

    • @instaccountant
      @instaccountant หลายเดือนก่อน

      Thanks for watching the video. Keep supporting.

  • @joashau4288
    @joashau4288 หลายเดือนก่อน

    Whats the app name

    • @instaccountant
      @instaccountant หลายเดือนก่อน

      Check the link in the bio.

  • @MississippiBoyy
    @MississippiBoyy หลายเดือนก่อน

    Can you write off food ?

  • @ayshasiddikaasha5629
    @ayshasiddikaasha5629 หลายเดือนก่อน

    I have talked over email with a company. They have confirmed the job and asking for last four digit of sin. Should I provide?

    • @instaccountant
      @instaccountant หลายเดือนก่อน

      You should provide your SIN to your employer within three days after your employment begins or after receiving a formal job offer.

  • @JustUmair
    @JustUmair หลายเดือนก่อน

    Thanks for the relevant information.

    • @instaccountant
      @instaccountant หลายเดือนก่อน

      Thanks for watching the video. Keep supporting.

  • @realscreen7735
    @realscreen7735 หลายเดือนก่อน

    Can I claim car maintenance cost as an expense even though my business is not generating any income?

    • @instaccountant
      @instaccountant หลายเดือนก่อน

      Yes, but the expense must be directly related to your business activities and substantiated.

  • @joejep5631
    @joejep5631 หลายเดือนก่อน

    I opened business for Uber and have GST number for that. Now I incorporated to become it contractor. Can I use the same previous GST number which I used for Uber? Please clarify. Thanks in advance

    • @instaccountant
      @instaccountant หลายเดือนก่อน

      Incorporating your business means it becomes a separate legal entity, which requires a new business number (BN). You’ll need to register for GST/HST under this new BN.

    • @joejep5631
      @joejep5631 หลายเดือนก่อน

      @@instaccountant Thanks

    • @instaccountant
      @instaccountant หลายเดือนก่อน

      @@joejep5631 Thanks for watching the video. Keep supporting.

  • @allenjones4336
    @allenjones4336 2 หลายเดือนก่อน

    Bad politicians not for me Canada is finished.

  • @belnkrumah5517
    @belnkrumah5517 2 หลายเดือนก่อน

    Does this include Uber delivery?

  • @alexsito2247
    @alexsito2247 2 หลายเดือนก่อน

    Will the tax people punish you for not accurately keeping track of kms used for uber eats and kms used for personal? Do I have to track with an app?

    • @instaccountant
      @instaccountant 2 หลายเดือนก่อน

      Yes, the CRA requires accurate tracking of kilometers for business use to claim deductions on your tax return. Using an app is not mandatory, but it makes tracking easier.

  • @Voyage001
    @Voyage001 2 หลายเดือนก่อน

    Hi I live in Milton Ontario a student, just started Uber eats three days ago will take time to activate uber passenger, so How soon i will need GST/HST no? i know it will take a while to cross the threshold of $30000?

    • @instaccountant
      @instaccountant 2 หลายเดือนก่อน

      Yes, register once you reach the $30k threshold.

  • @Voyage001
    @Voyage001 2 หลายเดือนก่อน

    Hi I live in Milton Ontario a student, just started Uber eats three days ago will take time to activate uber passenger, so How soon i will need GST/HST no? i know it will take a while to cross the threshold of $30000?

    • @instaccountant
      @instaccountant 2 หลายเดือนก่อน

      Yes, register once you reach the $30k threshold.

  • @thimille1
    @thimille1 2 หลายเดือนก่อน

    Hey My friend. Thanks for the video. I'm doing Doordash since last year ( 2023) did some taxes, but I believe I fcked up it.. Ive done with an taxes accountant and just did what they asked me to do.. Declare literally all my expenses... Otherwise some expenses doesn't look right ones.. For example.. They asked me to put on: my house rent ( they said my car stays in the garage and I keep charging it in my garage), electricity ( charging car at home), my own meals bought while shifting... This week, I've received a letter from CRA asking me to register an GST account ( because I'm doing over 30k dollars year).. I'm worried about it.. Could you give me some advice? I'm gonna call CRA to do that gst account on Tuesday... Anyways... Just worried... I have child benefits ( have 5 kids) and don't wanna get in trouble with it. Thanks again for the video.

    • @instaccountant
      @instaccountant 2 หลายเดือนก่อน

      Email me at info@instaccountant.com

  • @Voyage001
    @Voyage001 2 หลายเดือนก่อน

    Bro which insurance company is would choose for uber every i got G Licence in last month and i am a student, I live in milton ontario

    • @instaccountant
      @instaccountant 14 วันที่ผ่านมา

      Consider an insurance provider that offers rideshare coverage.

  • @seanwilley1524
    @seanwilley1524 2 หลายเดือนก่อน

    Should I charge GST/HST if the customer is in the US?

    • @instaccountant
      @instaccountant 2 หลายเดือนก่อน

      No, you don't charge foreign customers GST/HST unless for very specific reasons.

  • @Drmommy-ml5vn
    @Drmommy-ml5vn 2 หลายเดือนก่อน

    I am new commer to canada and recently i got job which pays 4000$ per month so after tax i get 3000$ per month and as am new i havent filed tax so am i eligible for worker benefit?

  • @summyamurtaza9290
    @summyamurtaza9290 2 หลายเดือนก่อน

    Very well said!....Thanks for sharing details and great information!

    • @instaccountant
      @instaccountant 2 หลายเดือนก่อน

      Keep watching and subscribe

  • @jawdatkhatib4471
    @jawdatkhatib4471 2 หลายเดือนก่อน

    Hi, the excel sheet link isn’t working, can you please fix it ?

    • @instaccountant
      @instaccountant 2 หลายเดือนก่อน

      The issue is now fixed and we apologize for any inconvenience.

  • @YeilinMaybeth
    @YeilinMaybeth 2 หลายเดือนก่อน

    I really appreciate your efforts! A bit off-topic, but I wanted to ask: I have a SafePal wallet with USDT, and I have the seed phrase. (air carpet target dish off jeans toilet sweet piano spoil fruit essay). How should I go about transferring them to Binance?

  • @QuillerZebulon-h3f
    @QuillerZebulon-h3f 2 หลายเดือนก่อน

    Mante Knolls

  • @mondherfathallah9750
    @mondherfathallah9750 3 หลายเดือนก่อน

    Thanks for the video. What about taxi drivers some of them works as a subcontractors under the one who own the license (aircab or white cab).so each week the owner tooks all the income and send transfer to the subcontractor. In ghis case the subcontractor has to register to Gst evan he dont reach 30k?.ken he claim expenses such as fuel as a subcontractor? Thank you

    • @instaccountant
      @instaccountant 3 หลายเดือนก่อน

      Yes, Taxi drivers have to register HST (it also helps them to recover HST they pay on expenses). Taxi drivers can claim all their expenses (like, gas, taxi lease, etc.)

  • @Ash_explainer
    @Ash_explainer 3 หลายเดือนก่อน

    What if some one working in my sin number , do I need to pay tax ?

    • @instaccountant
      @instaccountant หลายเดือนก่อน

      Yes, you are responsible for paying taxes on the income earned under that number, even if you were unaware of the activity. It's important to take immediate action to address this situation.

  • @VG-xi7iq
    @VG-xi7iq 3 หลายเดือนก่อน

    Nice .. I am working as an independent contractor for a US based company (having no office in Canada) remotely. I would like to know if I need BN or GST/HST number before I raise my first invoice?

    • @instaccountant
      @instaccountant 3 หลายเดือนก่อน

      If you're invoicing the US clients, no HST return is required.

  • @arvind01319
    @arvind01319 3 หลายเดือนก่อน

    i do uber taxi and my total income is 3500$ ..so in Line 101 in sales and revenue i have to write total income (3500$) or i have to minus my expenses and than put the remaining amount sales and revenue column??

    • @instaccountant
      @instaccountant 3 หลายเดือนก่อน

      Report total income without deducting any expenses.

  • @Trade_Inc
    @Trade_Inc 3 หลายเดือนก่อน

    Do I have to have different HST number of Uber and Lyft respectively ? Thanks.

    • @instaccountant
      @instaccountant 3 หลายเดือนก่อน

      No, you can use one HST number for both Uber and Lyft.

    • @Trade_Inc
      @Trade_Inc 3 หลายเดือนก่อน

      @@instaccountant Thanks

    • @instaccountant
      @instaccountant 3 หลายเดือนก่อน

      ​@@Trade_Inc Keep watching and subscribe

  • @sumangogia8258
    @sumangogia8258 3 หลายเดือนก่อน

    Sir, my son, work permit holder in Canada, has since started working with USA STARTUP as a consultant working remotely from Canada. Whether he is required to obtain GST number in Canada?

    • @instaccountant
      @instaccountant 3 หลายเดือนก่อน

      If he is invoicing the USA client, then no HST return is required.

    • @sumangogia8258
      @sumangogia8258 3 หลายเดือนก่อน

      Thanks sir for your revert back . One more thing whether he would be required to apply for BN to CRA Instead of GST/HST number in case of providing consultation on Invoice basis if total proceeds exceed 30000 CAD in the year?

  • @rappy90
    @rappy90 3 หลายเดือนก่อน

    So if you claim the HST/GST portion of your expenses it would lower your over all HST/GST owing. Would that mean you would have to make note when you claim your expenses on the self-employment portion of your income tax return to only claim the sub-total and not the total including HST/GST because that has already been filed on the HST/GST return? In other words make sure you don't claim it twice?

    • @instaccountant
      @instaccountant 3 หลายเดือนก่อน

      Your question shows confusion. Here’s the thing. Claim on the business portion of expenses. All HST part will be reported in hst return. I hope that helps. There’s another video which explains HST in detail.

  • @alwinjoseph1419
    @alwinjoseph1419 3 หลายเดือนก่อน

    I am doing uber eats as my second job i also doing just eat. My first job is a NI job. From uber and just i am making 100 to 150 per week. Do i need to give tax submission for this second job.

    • @instaccountant
      @instaccountant 3 หลายเดือนก่อน

      Yes, you need to report all your income, including from side jobs.

    • @instaccountant
      @instaccountant 3 หลายเดือนก่อน

      For a clearer explanation, check out this video. th-cam.com/video/wCXIMCAltpI/w-d-xo.htmlsi=fvB7u1qVKtjBxMnN

  • @hellofuture2656
    @hellofuture2656 3 หลายเดือนก่อน

    Sir I’m interested in buying a franchise or a business in Canada I’m talking restaurants is there any minimum requirements regarding capital to invest ?

  • @plessythomas8736
    @plessythomas8736 3 หลายเดือนก่อน

    came in July 2024. when should I file my returns? Will I get benefits ?

    • @instaccountant
      @instaccountant 3 หลายเดือนก่อน

      You will file your tax return in 2025.

  • @evanhume3706
    @evanhume3706 3 หลายเดือนก่อน

    all he did is go over each line like gross uber fares and booking fee but he did not explain how to work through this information to determine actual income

    • @instaccountant
      @instaccountant 3 หลายเดือนก่อน

      We appreciate your feedback and take it seriously. Our goal is to provide clear and transparent explanations. As the video title suggests, we intended to guide viewers on how to read the summary effectively and offer further explanations.