OT- Contractor

[Dave Cramer]

While we're on the cost of this thing.

Incorporation requires you to have a corporate bank account which
means you pay fees to put money in the bank, as well as take it out
and they give you no interest.

I have done both: I found being a sole proprietor was more difficult
at tax time, I had to save the money to pay taxes, I also had to be
very careful what I was claiming. As it is difficult to separate
personal from business as a SP. Incorporation separates things nicely,
plus you can buy your car inside the corp and not pay GST, or HST
soon. Now you are "supposed" to claim this as a tax benefit, but I
have two cars one for my business and one for my personal use so ....

Speaking of the HST, the only people to benefit from it are going to
be companies, so having a company will allow you to claim back all of
your HST for company purchases. Only your accountant can advise you on
how aggressive you should be on what is a company purchase, and what
is not.

However the real advantage for me was the ability to leave money in
the company pay the 18% tax and take it out later. It is my retirement
plan.

Dave

On Tue, Jun 22, 2010 at 2:45 PM, Mark Lane <lmlane-Re5JQEeQqe8AvxtiuMwx3w at public.gmane.org> wrote:
> That depends, in my case, I started as a sole proprietor because all I
> could afford was the $60 dollar registration. The plan is to
> incorporate when can afford to. Though from a liability standpoint, I
> have very little assets so I am only risking personal bankrupcy. With
> that said, if I can get enough billable hours this month, I will be
> incorporating.
>
> On Mon, Jun 21, 2010 at 11:00 PM, ted leslie <tleslie-RBVUpeUoHUc at public.gmane.org> wrote:
>> Or you screw something up and you end up losing your house and car to pay the damages.
>> Don't leave assets in your company, and if sued, it folds.
>> If you are married (commonlaw), you have to incorporate, else you also leave your significant other at risk.
>> Actually, there is just no reason to not incorporate, its just unnecessary exposure.
>>
>> tl
>>
>> On Mon, 21 Jun 2010 22:47:33 -0400
>> Yanni Chiu <yanni-bJEeYj9oJeDQT0dZR+AlfA at public.gmane.org> wrote:
>>
>>> William Park wrote:
>>> > ...  Though, if you're the only shareholder, the only
>>> > executive, and the only employee, then I don't think you can escape
>>> > resposibility as easily.
>>>
>>> But that is the whole purpose of incorporation and limited liability.
>>> What might happen is that you might be asked to personally guarantee a
>>> contract, but that is beyond what is required.
>>>
>>> If you're referring to a case of "piercing the corporate veil"
>>> (http://en.wikipedia.org/wiki/Piercing_the_corporate_veil), then you
>>> should avoid doing the things that cause that - i.e. don't mix personal
>>> and corporate monies and stuff.
>>> --
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>>
>>
>> --
>> ted leslie <tleslie-RBVUpeUoHUc at public.gmane.org>
>> --
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>
>
>
> --
> Mark Lane <lmlane-Re5JQEeQqe8AvxtiuMwx3w at public.gmane.org>
> --
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> TLUG requests: Linux topics, No HTML, wrap text below 80 columns
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>
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