In this episode, we´ve brought in our tax partners and CPAs, Nasser Khan, and Ali Qamar from Prime Accounting & Tax, to give you IT professionals in Canada all the information you need to decide between setting up as a Sole Proprietor or incorporating your business. We explore the critical differences between T4 standard contractors, Sole Proprietors, and Incorporated contractors in Canada, helping you understand which path might be right for you. Whether you're just starting your IT contracting journey or looking to optimize your current setup, this episode provides valuable insights and practical tips to help you make informed decisions and maximize your financial benefits. Enjoy the episode, and don´t forget to give it a thumbs up if you like what we´re doing here at Careers in the Cloud! Topics: T4 Standard Contractor vs. Sole Proprietor vs. Incorporated Contractor: Understanding the distinctions and benefits. Decision Factors: What to consider when choosing your business structure. Tax Implications: At what income level does incorporation become financially beneficial? Provincial vs. Federal Incorporation: Differences and steps to set up your corporation. Payroll vs. Dividends: Should you pay yourself a salary, dividends, or both? Working with US Clients: How to navigate taxes and invoicing when dealing with US-based clients. Currency Considerations: Is charging in USD while living in Canada advantageous? Legal Structures: Do you need an LLC or S-Corp in the US? Tax Reduction Strategies: Legal methods to minimize corporate and personal income taxes. Chapters: 00:00 – Introduction 01:05 - The difference between a T4 temporary contractor, sole proprietor, and an incorporated contractor 03:52 – What risks to consider when deciding what route to take 09:31 – What income is required to be an incorporated contractor 10:30 – Process from permanent employee to contractor 12:11 – Do you need multiple contracts to be a contractor? 14:15 – Issues with contracts appearing as employment contracts 16:23 – Federal Canadian incorporation vs provincial incorporation 21:43 –The steps to setting up an incorporation 24:48 – How to pay yourself as a contractor 28:22 – Tax percentages 36:25 – Cross-border contracting 43:33 – Legally reducing the amount of tax you pay 50:18 – Options for investing ___________________________________________________________- Check out our partner, Prime Taxes: https://primetaxes.ca/ Want help finding your next IT mission? Drop your CV today on our website and become a part of our global IT contractor community: https://www.montrealassociates.com/