Can you become incorporated while on open work permit?

[hamid123456]

I'm currently on open work permit and waiting for my permanent residency application to be approved.

I have a permanent job, but I have an offer to work for another company on a 12-month contract.

I don't want to lose my first job and want to have both jobs at the same time and I don't want any of the employers find out about this. If I work as a T4 employee on the contract job, I'll need to fill in TD1 tax forms which has a question about having more than one employer or payer at the same time.

I think if I become incorporated, the tax system will be different and then I won't need to disclose in tax forms to my second employer that I have more than one employer.

But I'm not sure if I can register a business and become a corporation if I'm on open work permit.

Thanks.

 

[ahsan_cse2004]

Hi Hamid
Did you find anything about it?

 

[Copingwithlife]

Hi Hamid
Did you find anything about it?

If you’re in the same situation as the o/p a individual on a contract position isn’t a T4 employee . They would receive a T4A at the end of the tax year for services rendered , not a T4. They would use that slip and file a T2125 for business & professionals income . If they had another job ,contract , then you’d file ANOTHER T2125 for that job . Professional income is typically like Doctors etc . The individuals you are doing the work for would not know you are doing other work unless you told them. Your tax return you filed is confidential. You could be working multiple contract jobs. That’s between you & the CRA . A TD1 is filed with an employer not if you’re self employed. Your taxes are determined from all the self employment income after expenses you indicate on the T2125. You transfer that amount to your T1 return and pay the taxes based upon that . Just be aware if your self employment income is over $30k, you’re required to register for a GST/ HST number and collect & remit that tax separately. See CRA guides T4002, RC4002 for more information.

 

[ahsan_cse2004]

If you’re in the same situation as the o/p a individual on a contract position isn’t a T4 employee . They would receive a T4A at the end of the tax year for services rendered , not a T4. They would use that slip and file a T2125 for business & professionals income . If they had another job ,contract , then you’d file ANOTHER T2125 for that job . Professional income is typically like Doctors etc . The individuals you are doing the work for would not know you are doing other work unless you told them. Your tax return you filed is confidential. You could be working multiple contract jobs. That’s between you & the CRA . A TD1 is filed with an employer not if you’re self employed. Your taxes are determined from all the self employment income after expenses you indicate on the T2125. You transfer that amount to your T1 return and pay the taxes based upon that . Just be aware if your self employment income is over $30k, you’re required to register for a GST/ HST number and collect & remit that tax separately. See CRA guides T4002, RC4002 for more information.

Thank you very much for your reply. This is a helpful suggestion