The last few months have been been a better economic climate for Calgary oil and gas companies. So, I am happy to announce I have found new employment! I will be working as a consultant Geologist for a Junior natural gas producer. I didn’t know how to react when I received my job offer, I had so many questions!
Starting work as a contractor is a seemingly daunting task. Should I incorporate? What insurance do I need? How about WCB and EI? After signing my contract, I quickly set out to complete all the necessary tasks.
I chose to go the sole proprietor route for a number of reasons. There has been a recent crack down by the CRA on single client contractors using an incorporated business (paying 15% tax) for tax aversion instead of taking a salary (~40% personal tax). In addition, I was concerned about the increased difficulty and expensive tax filing for corporations at year end. I did not have to register a name or number company, just had to request a GST number from the CRA (no cost).
Next I had to register with the WCB. This would protect me in the instance of workplace injury. The minimum premium for WCB is $200.
The final startup expense was the general liability insurance. Due to the nature of my work, and the risks I am subject to while at a drilling rig, the lowest premium I could find was $850/year.
I think I will start tracking expenses with quickbooks ($5/month or $60/year) to make book keeping easy and avoid the expense of an accountant at tax time. I have always done my own taxes and I the feeling of having control of my own finances.
Stay tuned for more job updates!
net wealthy 