Corporation or Sole Proprietorship?

[mika]

Hi all, I may be able to find a job as a contractor and I don’t know which one is better to register - a Corporation in Ontario or Sole Proprietorship? Any ideas?

:confused:

[lookingforjob]

If the sole proprietorship is established in your name, you don't have to register the business.

From a tax perspective and liability it's much better to register corporation.

[workaholic]

Resistering as a corporation will protect your assests from the company debt as corporations are treated as individuals. The only problem is that the tax liabilities can be substantial plus it takes time to do it whereas with a sole proprietorship you just hang out your sign and you are ready to do.

Here is some info regarding incorporation in Canada (http://sbinfocanada.about.com/od/incorporation/)

[SDuncan]

If you want to work as a contractor, register a corporation. It will save you a lot of headaches and if you find a good accountant you have nothing to worry about. But if it's only you first job, lets say a three month contract and you are looking for permanent position in the future, then don't register a business.

[mika]

Thanks for the advice. I still don’t know what to do because I found this 3 month contract and I am still considering going back to school for a year to get my MA degree. Maybe I should finish the contract and after I graduate I will register a corporation and start actively looking for contracts :)