Pro Business Tax
Accounting for IT Consultants & Independent Contractors
Contract or incorporate? Salary or dividends? We model your actual numbers so you keep the most of every invoice — and stay clear of the personal-services-business trap.
When you move from a salaried job to consulting, the tax picture changes completely — and the right structure can be worth tens of thousands a year. We help IT consultants and independent contractors decide whether to incorporate, pay themselves efficiently, capture every legitimate deduction, and avoid the CRA’s personal-services-business (PSB) rules that can wipe out the small-business deduction.
What We Handle
- Incorporate-or-not analysis on your real numbers
- Salary vs. dividend planning
- Personal-services-business (PSB) risk review
- Home-office, equipment, and expense deductions
- HST registration & filing
- Corporate tax (T2) and personal (T1) tax
- Job-offer vs. consulting after-tax comparison
Real Result — Ontario IT Consultant
We helped an IT consultant weighing a job offer against going independent gain nearly $30,000 more net income on the same gross — through the right structure. (See our Case Studies)
Get a Free Consult
If you're an IT consultant or independent contractor — and want to keep more of every invoice while staying clear of the CRA's personal-services-business rules
Frequently Asked Questions
Usually once your contract income is steady and above your personal spending — incorporation can defer and reduce tax. We can run your numbers first to see if it makes sense.
If the CRA sees you as effectively an employee of one client, PSB rules deny the small-business rate and most deductions.
It depends on rate, benefits, and structure. We can model both so you can decide with real numbers.
Once you pass $30,000 in revenue over four quarters, yes.
Home office, equipment, software, professional fees, subcontractors and more, when properly tracked.