Amanda's musings on entrepreneurship, money mindset, and being a woman in management consulting.
If you're new to independent consulting or still in the planning stage of launching your business, you might not yet be aware of how important it is to establish your employment status in the eyes of tax authorities.
In both Canada and the United States (and likely other countries), there can be significant tax consequences if the CRA / IRS determine that your relationship with a client is more like that of employer/employee.
So what can you do to ensure you are considered a self-employed independent consultant? A quick summary of considerations is presented below. Please note this is not legal advice; please consult with your lawyer and/or accountant to get advice on your particular circumstances.
1. Degree of Control
Self-employed individuals have the ability to work independently, direct their own work, and choose when and for whom they work. Consider working for at least two different clients in any given fiscal year to...