What are the key differences between being classified as a freelancer, independent contractor, or sole proprietor, and how does each impact my taxes and finances?
Fun fact: from a tax perspective, there isn’t much difference between all of those words. As a freelancer or independent contractor or sole proprietor in Canada, you’re basically a boss! 🎉 That means you’re responsible for your own taxes and benefits, so it’s important to keep track of your finances. You’ll need to provide your clients with a contract and invoice for your services. Your clients might also issue a T4A slip at the end of the year for your work. The main thing that you will need at the end of the year is to file form T2125 (Statement of Business or Professional Activities) to report what you’ve earned and claim any write-offs you are eligible for. 💰
If you are a creative freelancer in Canada then YES!! If you are a self-employed individual we’ve got your back when it comes to tax season 💸. Let’s get you sorted so you can get back to chasing your dreams! 💪🏽
Quick heads up — we’re not currently able to offer our services to Quebec residents and incorporated individuals. We know it’s not ideal, but we’re working hard to expand our reach and help everyone we can! 👊🏽 For the latest updates, make sure to follow us on social media! 📲
Tax filing requires a lot of data – we need to know everything you earned and spent in the entire year to do this for you. To automate that and make your life easier, we use a secure platform called Plaid, which uses bank-level encryption, to import your transaction history. The great thing about Plaid is we never actually see your bank login info and can’t make any changes or actions on your accounts. On our end, we also have bank-level encryption to make sure whatever data we have from you is always protected and secure 🔒. Let’s put it this way, we only ask for the necessary data we need to file your taxes for you (similar to any accountant would) and we will guard it as if it were ours!