OT- Contractor

[phiscock-g851W1bGYuGnS0EtXVNi6w at public.gmane.org]

> D. Hugh Redelmeier wrote:
>> It would be great to hear from folks with experience whether a
>> corporate entity matters for their consulting work.
>>

Back when I did consulting, you had to be incorporated to bid on work for
the Ontario Government and the Feds. They wouldn't deal with a Sole
Proprietor. (When you think about it, this is wierd, since it's easier to
go after the assets of a SP if the deal goes south. It was explained to me
that the government 'looks bad' if it goes after an individual, but it can
sue a corporation without bad press.)

It's true that you have to do the books and file a corporate tax return if
you are incorporated, and that's a major pain. You probably have to
collect and file GST and PST, more pain. (I'm the only person in Ontario
who is happy they are being combined ;). However, you can do the corporate
return yourself, especially if the losses offset income, where the return
is quite simple in that case. It's quite expensive to hire a professional
to do the return - I was paying an accountant about $800 for a very simple
return, which is why I took it over myself when times were lean.

This year, we're going to try using a computer program for the corporate
return. I'd be pleased to hear from anyone who has experience going that
route.

Peter

-- 
Peter Hiscocks
Syscomp Electronic Design Limited, Toronto
http://www.syscompdesign.com
USB Oscilloscope and Waveform Generator
647-839-0325

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