If You Are Running A Private Limited Company And Even Taking A Salary. (Self Employed OR Employed)

[karenn1617]

Hello Guys,

I was in the boat two weeks back where I put myself up as self employed BUT after discussing the things with number of people both on this forum and outside, I come to the conclusion that ~

IF A PERSON WHO IS RUNNING A PRIVATE LIMITED COMPANY AND IS TAKING THE SALARY (PLUS FILE ITR EVERY YEAR), THEN HE OR SHE CAN CONSIDER HIMSELF AS AN EMPLOYEE OF THE COMPANY INSTEAD OF SELF-EMPLOYED.

Now detailing the things one-by-one -

1. I am running an internet media company (private limited) ~ a family business basically - where we are three shareholders on board ~ family members of course - A. ME, B. My Mother and C. My Sister

2. ME working in the position of CEO / Advertising - Marketing Specialist
My Mother is working in the capacity of Director
My Sister is working in the capacity of investor

* Since I hold an important position in the company, I do serve as Director too in the company.

3. Because of company's internet business in nature, I run the company from home itself (home office you say) ~ with two staff (work remotely but in the same city), other two staff (work remotely but in different city ~ they are basically those to whom we outsource the work).

--

Why I Choose To Select The Option As Employed?

1. Although I owe the company from the very first day but since from day 1, I am handling the company as more of Advertising and Marketing Specialist (at first place; around 40 hours per week) AND 2. CEO (at second place as I am the face of the company; around 20 hours per week).

2. From Year 2, I am taking full fledge salary in mine account along with bonuses and so on... all with proper paperwork i.e. salaries in mine saving account, pay slips (everything) plus I file ITR also from past five years.

3. Being working in the top most position in the company, I owe 14% shareholding too in the company (the least among other family members).

--

Now What I Am Proposing To Submit Post-ITA for Work Experience

1. Company's Incorporation Paper
2. Director's Identification Number
3. Company's Year-On-Year Earning (as our 99% transactions are done via PayPal only; around 400 pages of data)
4. Mine Own Joining Letter (Signed by Mine Sister As When We Started The Company, Me and Mine Sister Are Founding Member While On The Second Year, She Took The role of investor mainly and mine mother join me onboard)
5. Mine Current Experience Letter (Signed by Mine Mother As She Owns The Senior Position Than Me)
6. Mine Income Tax Returns
7. Company's Profile
8. Mine Published Interview As Founding Member AND CEO
9. Letter Of Explanation

--

Now Why I Am Sharing All This?

See if you too fall under the same thing ~ running a private limited company AND taking a salary, then you can consider yourself too as one of your employee.

Also, this link shares one more example for such a case ~ http://www.canadavisa.com/canada-immigration-discussion-board/threads/how-to-prove-work-experience-in-family-owned-company.412381/

Last, remember the thing will not work for those who are in partnership deeds OR sole proprietorship as for that case, you need to proof as self-employed only.

--

I hope the above scenario will help everyone who are in same dilemma.

All The Best.

And hope to see everyone in Canada soon.

K

 

[ramonvilla]

Hey Karenn, did your application get approved? I am in the same situation and have heard many things, and do not know how to proceed. If your case was successful, I might do the same! Please share!

 

[ekta2019]

Hi Karen,

Thank for sharing all this info!

You mentioend :
"Last, remember the thing will not work for those who are in partnership deeds OR sole proprietorship as for that case, you need to proof as self-employed only." does it mean If I am legal partner of a company categorized in LLP, I mean we are two partners running this company. and If I take salary from my own company will it be still considered as Self-employed or I can still show my salary slips as an employee?

Please respond ASAP I am under same dilemma.

 

[dotslash227]

Hi Karen,

Thank for sharing all this info!

You mentioend :
"Last, remember the thing will not work for those who are in partnership deeds OR sole proprietorship as for that case, you need to proof as self-employed only." does it mean If I am legal partner of a company categorized in LLP, I mean we are two partners running this company. and If I take salary from my own company will it be still considered as Self-employed or I can still show my salary slips as an employee?

Please respond ASAP I am under same dilemma.

If you own a business (100% or even 50% or > 50%) and is responsible for it's day to day operations and are a signatory to it's affairs and bank accounts, then you can consider yourself as self-employed.

Self employed == You are the founder or one of the founders, own a substantial stake and makes the decisions, otherwise, you are an employee.

 

[eeeeeee]

If you own a business (100% or even 50% or > 50%) and is responsible for it's day to day operations and are a signatory to it's affairs and bank accounts, then you can consider yourself as self-employed.

Self employed == You are the founder or one of the founders, own a substantial stake and makes the decisions, otherwise, you are an employee.

Hi, firstly I am thankful for your information ,since I have the similar situation as mentioned by other people. here
I applied for Express entry skilled labor, and I am working in my family business.
Now I am not very sure whether why I should be counted as self-employed or not. You will be much appreciated if you could share your point of view on this.

Here is my condition：
I worked in my family business, but I am not in charge of the operations or strategic things. Instead I do the jobs that are assigned to me at the workplace.I tend not to consider myself not a self-employed candidate, because I now just the employer of the company in facet. However, what makes me confused is that I used to own 30% of the company share and I am one of founders of the company (my name is on the list of founders due to the attributes of family business, and that's all)

Should I be counted as the self-employed or not? I am really afraid of putting wrong information in the EE system and causing rejection due to the wrong choice on my work experience. Your help is valueable for me.

Thanks a lot.
Best regards,

 

[dotslash227]

Hi, firstly I am thankful for your information ,since I have the similar situation as mentioned by other people. here
I applied for Express entry skilled labor, and I am working in my family business.
Now I am not very sure whether why I should be counted as self-employed or not. You will be much appreciated if you could share your point of view on this.

Here is my condition：
I worked in my family business, but I am not in charge of the operations or strategic things. Instead I do the jobs that are assigned to me at the workplace.I tend not to consider myself not a self-employed candidate, because I now just the employer of the company in facet. However, what makes me confused is that I used to own 30% of the company share and I am one of founders of the company (my name is on the list of founders due to the attributes of family business, and that's all)

Should I be counted as the self-employed or not? I am really afraid of putting wrong information in the EE system and causing rejection due to the wrong choice on my work experience. Your help is valueable for me.

Thanks a lot.
Best regards,

Self employed would mean that you own the business entirely and you are the one who makes all the decisions. Otherwise, you are an employee (if you get a salary).

 

[Bhagirath Jadeja]

Hi, firstly I am thankful for your information ,since I have the similar situation as mentioned by other people. here
I applied for Express entry skilled labor, and I am working in my family business.
Now I am not very sure whether why I should be counted as self-employed or not. You will be much appreciated if you could share your point of view on this.

Here is my condition：
I worked in my family business, but I am not in charge of the operations or strategic things. Instead I do the jobs that are assigned to me at the workplace.I tend not to consider myself not a self-employed candidate, because I now just the employer of the company in facet. However, what makes me confused is that I used to own 30% of the company share and I am one of founders of the company (my name is on the list of founders due to the attributes of family business, and that's all)

Should I be counted as the self-employed or not? I am really afraid of putting wrong information in the EE system and causing rejection due to the wrong choice on my work experience. Your help is valueable for me.

Thanks a lot.
Best regards,

Hey,
Did you apply already? What have you choose to apply self employed or salary?

 

[Bhagirath Jadeja]

Hello Guys,

I was in the boat two weeks back where I put myself up as self employed BUT after discussing the things with number of people both on this forum and outside, I come to the conclusion that ~

IF A PERSON WHO IS RUNNING A PRIVATE LIMITED COMPANY AND IS TAKING THE SALARY (PLUS FILE ITR EVERY YEAR), THEN HE OR SHE CAN CONSIDER HIMSELF AS AN EMPLOYEE OF THE COMPANY INSTEAD OF SELF-EMPLOYED.

Now detailing the things one-by-one -

1. I am running an internet media company (private limited) ~ a family business basically - where we are three shareholders on board ~ family members of course - A. ME, B. My Mother and C. My Sister

2. ME working in the position of CEO / Advertising - Marketing Specialist
My Mother is working in the capacity of Director
My Sister is working in the capacity of investor

* Since I hold an important position in the company, I do serve as Director too in the company.

3. Because of company's internet business in nature, I run the company from home itself (home office you say) ~ with two staff (work remotely but in the same city), other two staff (work remotely but in different city ~ they are basically those to whom we outsource the work).

--

Why I Choose To Select The Option As Employed?

1. Although I owe the company from the very first day but since from day 1, I am handling the company as more of Advertising and Marketing Specialist (at first place; around 40 hours per week) AND 2. CEO (at second place as I am the face of the company; around 20 hours per week).

2. From Year 2, I am taking full fledge salary in mine account along with bonuses and so on... all with proper paperwork i.e. salaries in mine saving account, pay slips (everything) plus I file ITR also from past five years.

3. Being working in the top most position in the company, I owe 14% shareholding too in the company (the least among other family members).

--

Now What I Am Proposing To Submit Post-ITA for Work Experience

1. Company's Incorporation Paper
2. Director's Identification Number
3. Company's Year-On-Year Earning (as our 99% transactions are done via PayPal only; around 400 pages of data)
4. Mine Own Joining Letter (Signed by Mine Sister As When We Started The Company, Me and Mine Sister Are Founding Member While On The Second Year, She Took The role of investor mainly and mine mother join me onboard)
5. Mine Current Experience Letter (Signed by Mine Mother As She Owns The Senior Position Than Me)
6. Mine Income Tax Returns
7. Company's Profile
8. Mine Published Interview As Founding Member AND CEO
9. Letter Of Explanation

--

Now Why I Am Sharing All This?

See if you too fall under the same thing ~ running a private limited company AND taking a salary, then you can consider yourself too as one of your employee.

Also, this link shares one more example for such a case ~ http://www.canadavisa.com/canada-immigration-discussion-board/threads/how-to-prove-work-experience-in-family-owned-company.412381/

Last, remember the thing will not work for those who are in partnership deeds OR sole proprietorship as for that case, you need to proof as self-employed only.

--

I hope the above scenario will help everyone who are in same dilemma.

All The Best.

And hope to see everyone in Canada soon.

K

Hey, Can please tell us, have you got approval?