Tax Bulletin - Self-Employment: Is it for you?

May 01, 2018

So you’re tired of the office politics. Nothing would be better than working for yourself. You want to become an independent contractor.

Should you? This is a question more and more individuals are asking themselves. You may have been a victim of downsizing and find yourself seeking new work. You may just be tired of working for someone else and have decided to set out on your own. Or, your current employer may have approached you to see if you are interested in restructuring your work arrangement so that you would be considered self-employed.

This bulletin is intended to help you answer this question. First, we’ll discuss some of the advantages and disadvantages of being self-employed that you should consider. Then, we’ll review the common law tests that must be met for you to be considered to be an independent contractor because you can’t just state that you are self-employed and be treated that way for tax purposes. Finally, we’ll review the tax consequences of becoming an independent contractor — we’ll look at the types of expenses you can deduct, the choices you have in selecting a year-end for your business, and the sales tax consequences of running your own business.

Download our full tax bulletin