Is it better to incorporate my nonprofit or not?

Should I incorporate for freelance work in Canada? How do you incorporate for freelance?

• I've started working freelance this year as a broadcast audio technician, and plan to continue working freelance next year in addition to performing part time contract work for my original employer. I'd like to purchase some testing equipment for my freelance work and have the ability to write it off, starting with small items (<$300) but maybe getting in to bigger ticket items in the future. My projected freelance income for 2009 is only about 15-20k, a conservative number as I am still getting established in the freelance market. I still rely on my part-time employment for the bulk of my income. Is it worth becoming incorporated for 2009? Some people have told me that it isn't worthwhile unless you're making 75k or more in freelance, but others have told me to incorporate now. I'm confused. Also, how do I incorporate? Do I need to incorporate with the government of Ontario or with the Federal government, or both?

• Answer:

  Not worth it I usual advise people not to get a GST # until they sell 30k in a month or in a year And do not incorporate until you hit 100k revenue per year. Its a lot of extra paper work and most Accountants will charge more then $1000 per corporate tax return.