Personal Incorporation in Canada

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canycuk
Posts: 5
Joined: Mon Jan 13, 2020 12:40 pm

Personal Incorporation in Canada

Post by canycuk » Mon Jan 13, 2020 12:52 pm

Hi everyone - my wife moved with me from the US to Canada a few months back. Her employer in the States was a small (~500 people) firm with only a US presence. However, she was able to convince the company to let her work remotely by setting up an arrangement with "HR Options", a firm that serves as HR essentially for outsourced employees. Every month her paycheck in USD is routed through HR Options, and they convert it to CAD. They also handle the basic HR tasks, etc., for a small fee.

My wife's company doesn't want to pay for that service anymore, though, and is asking her to incorporate (she considered becoming a sole proprietor, too, but some cursory research has suggested that the incorporation route is superior). Can anyone comment on the pros/cons of incorporation in a case like this? We're concerned a bit by the "unknown unknowns" - would there be a loss of worker protections, some kind of looming tax issues, or other downsides we're not seeing? My wife is interested in going through with this because it would save her company money and generate goodwill (by virtue of her willingness to incorporate and push the third-party HR company out of the picture) but we want to be sure we know what we're getting into.

Thanks very much!

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