richard_m

Hi Guys

I am moving to Toronto later next month on a temporary Visa for a year to start a 2 year IT contract (I plan to extend my visa over there either on the strength of the 2nd year or by my Canadian Partner).

My question is - does anyone know the best way to setup a company for IT contracts - is is best to get Incororated or to become a Sole Proprietor. I will be getting paid through a IT Employment Agency, but if they pay me direct, I will lose on on tax advantages etc.

Also .. is there such a thing as an Umbrella Company in Canada - so I get paid through them and they take care of the tax etc. I haven't been able to find such a thing in Canada from a Google search - maybe they are called something else (if they exist at all)?

Any help you can provide is very much appreciated!
Thanks!!
Richard

dbd33

The easiest thing to do is incorporate a number company. That is, you don't register a name but take the next free number, that saves having to pay for searches. This is common practise, trucks often say on the side XYZ Trucking, a division of 123456789 Ontario Inc. You can use any tradestyle not registered by someone else but have no claim on it. My first company bank account was in the name nnnnnnnnn Ont. Inc o/a dbd consulting but now I don't bother, I have cheques written to the numbered company directly.

The cost of setting up is about $800, you can get a kit of forms from stationery suppliers such as Staples or you can pay an accountant to do it.
There are some annual fees and filing requirements and there'll be a cost to wind the firm up. You have to do it though, in the eyes of the taxman two years working for the same pimp makes you an employee of that pimp, the numbered company provides a tax avoidance shield for the employee and protection for the employer from liability for various employer's costs and obligations.

Platinum979

Hey Richard,

Do you know any good UK/CA IT Recruitment companys in T.O Canada?
I'm currently contracting in London, England as a 2nd/3rd Line Support Engineer.

Thanks!

P979

ck1

Richard, as far as I know Umbrella companies don't exist here...and I agree with the other post that becoming 'incorporated' (eg, setting up a Ltd co) is easy and worth while due to tax advantages etc.

richard_m

Thanks for the info!!...

do you know if there are any issues with setting up a corporation as a non-Canadian citizen ?

Also do you know if there are any differences to the Staples offering (as you say cost $800) and this online version I found today -->

http://strategis.ic.gc.ca/cgi-bin/sc...ter.cgi?lang=e

Which I believe only costs about $200 - $300 . (Sorry its the Scottish in me which must save cash (every pounds a prisoner!!))

Thanks again!!

richard_m

Hi P979

I have found it quite hard to get even a response from most agencies who are recruiting for jobs I could do standing on my head...
I'm sure you know by now, its who you know more than what you know that gets you the foot in the door... So my best advice is to get every man who knows a man in the city of your choice to ask around.

The agency I found the best in Toronto is http://www.tes.net/

Best of luck mate !

Platinum979

Cheers mate... Thanks for the info! All the best in Canada!
P979

dbd33

There weren't when I did it though that was yonks ago. There was a requirement to be somehow resident but I don't know the nuances.

$800 was my recollection of the "all in" cost. I'd expect the kit to be less than a hundred but then there are a bunch of registration and filing fees.

btw, when you open a company account the bank will ask for the original incorporation documents; let them take a copy but don't let them keep the original, you may need it again.

richard_m

Thanks for the advice... what about Company Accounts, any particular bank you have found to be the best? Your advice, will sway me in choosing my personal current account

Cheers

dbd33

My company accounts are with the TD. I can't move them because I gave the TD the original incorporation papers and they lost them "you can't expect us to retain documents more than a year or so, branches merge, we buy more banks, things do get lost". Note that I can't even move the accounts to another branch of the TD without the incorporation papers. My personal accounts are with pc financial, alas they don't do company ones.

If I were doing it again I'd put the company one at the branch of a major bank most easily accessed over the long term, perhaps the RBC opposite Union Station, and the personal accounts with pcfinancial. Note that the major banks are not good at dealing with customers, especially corporate customers, at any branch other than the home one. pc financial, at the other extreme, doesn't have branches.