If your goal is to have a long and successful career as an independent consultant, one of your first considerations should be incorporating. Not only does it offer tax advantages and personal protection, it can also open up more opportunities in the contracting world. There is a cost to setting up and some additional paperwork initially as well as annually, however, it really does make a difference.

Consider these key benefits:

• lower taxes – higher per diem rates for seasoned consultants can easily push you into a higher tax bracket
• control –  you can decide if you want to be paid as an employee of your corporation or choose to pay yourself through dividends
• spread the wealth –  family members can be shareholders and receive dividends
• more opportunities – some employers make it part of their criteria, only considering incorporated contractors
• bankruptcy and legal protection – separates your business dealings from your personal holdings, keeping your personal assets protected

Taking the first step

On the Government of Canada website you while find the following step-by-step guide to incorporating:

• Step 1: Deciding how you want to name your corporation
• Step 2: Completing articles of incorporation
• Step 3: Establishing the initial registered office address and first board of directors
• Step 4: Filing the appropriate forms and paying the fee
• Step 5: Processing your application

While registering yourself as a corporation, obtaining your GST/HST number, opening a Business bank account can all be done online, we often recommend getting the help of an accountant and/or lawyer to ensure you are properly set up and abiding by all the rules. Their experience can save you time and give you peace of mind that everything is optimized and in order, so you can reap the maximum benefits.