Upon acceptance of an assignment (unless working as a direct employee of NavPoint Consulting Group Inc.) resources will be working as independent consultants.
Getting Incorporated
Many independent consultants consider incorporation. There are many benefits to incorporation, but you need all the facts before you can decide if it is right for you. It is critical to discuss incorporation with an accountant and make an informed decision based on individual circumstance. Your accountant will be able to provide you with the full scope of the benefits of incorporation and make a recommendation as to its suitability for your situation.
Registering for GST/HST Account Number
Unlike employees, almost all independent consultants will need to charge GST/HST for their services. This will apply whether they are incorporated or not (i.e., a sole proprietor). In order to do this, consultant must obtain a GST/HST number (free of charge) from the Canada Revenue Agency (CRA). Your accountant will be able to help you obtain a GST number.
If your annual income (before expenses) is less than $30,000 you are considered a small supplier and will not need to charge GST/HST. However, as soon as your income exceeds this, you will need to charge. For this reason, it is helpful to have a GST/HST number registered.
Professional Liability (PL) Insurance
As an independent consultant, people rely on your expertise and advice. You are held to a higher standard with respect to this expertise and if someone feels you haven’t performed to this standard, you may be held accountable for the business consequences of your actions.
Professional liability insurance goes above and beyond the coverage you can get with comprehensive general liability insurance. It protects you and your corporation against charges of negligence, intellectual property infringement, or errors and omissions. The exact level of protection will depend on the level of coverage you purchase. Your insurer can help make a recommendation on the type of insurance coverage you should consider as an independent consultant.