Hi,

I'm new to Canada. I have a contracting job and am thinking of incorporation. Do I need an accountant for this? Or can I do this myself?

Thanks,
Vijay

You can incorporate on your own. However, in order to handle your accounts, taxation, and intricacies you need an accountant. It's highly recommended. Talk to a few Accountants from your sources, and don't just Google them. Interview them, and compare the rates.

Also, you need a Business chequing account. Go with RBC Business eSavings if you're planning to conduct all your transactions online (without stepping into Branch in most cases). It's free of cost for electronic transactions. For in-branch ones, you need to pay a fee of 0.85/transaction.

Hope this helps.

Thanks very much, Febpreet. How much do you reckon an accountant cost me if I leave things simple? I expect to get paid once a month.

From my experience, I would say between 700 and 1200 an year.

Hello,

You don't necessarily need an accountant considering you've just incorporated. As a business owner, you should learn the ins and outs of financial accounting and corporate taxation as well, and not just delegate to an accountant. Since you've only just incorporated, you will not have to learn much. Perhaps when things get complex, then you can always delegate matters to qualified professionals.

The CRA's website is teeming with literature on corporate taxation. You can get started here: http://www.cra-arc.gc.ca/E/pub/tg/t4012/t4012-e.html.

I agree that it will take a lot of time and effort to learn this, especially as it may not be your original area of study, but it is a good alternative to paying out large sums of money regularly.

On the other hand, you could argue that an accountant is especially necessary at the incorporation stage to get you started on the right track. Your activity on the forums to ask the right questions is certainly a sign that you are doing your due diligence. All the best.

Madan Chartered Accountant team
www.madanca.com

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Madan Chartered Accountant team
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I would say concentrate on your contractual obligations than learning accountancy in a new land. let the professional do the job for following reasons:
- The pro will save you more than what you will save by doing it yourself. A pro will always know practical (and safe) ways to save tax.
- A mistake will lead to penalties more than savings...and stress..and time.
- you will have to run the frequent payrolls and expenses , it will be lot of work.
- In general the $300 is spent in a quarter. which should be worth of your 3-5 hours of work for a quarter of 450 hours. Give yourself a break !!

Similarly , I suggest every person including smart and employed ones, should use a tax consultant. Personally experienced difference in for the years i did it myself than the years I asked a tax consultant to do so. You can trust a desi pro on this.

As an independent contractor, you will save a lot on taxes. It also makes you more "employable" - in IT for contract positions.

New immigrant centres have accountants/lawyers etc - whom you can consult without paying any fees. You should find out what charges are deductible as expenses (eg. Utilities/meals/pro-rated mortgage or rent etc.) - you must file these from the beginning, so that you are not scrambling at the end if the year while filing returns.

Register for HST - which is free and you can get it in 2weeks or so by email. All the best!