When is incorporation needed in Ontario?

[ict18]

Hi everyone!

I've been offered a gig by a previous manager which will allow me to make some extra income aside from my day job.

If what I'll be making out of this gig is under $7,000 a year, do I still need to get incorporated for that?

I can't find this info anywhere.

 

[Copingwithlife]

No. You’ll file the extra income not supported by a T slip I believe on line 103, 104 on the General Tax Return . You’ll also file a T2125 to declare the business origin on the income . That income gets added to your T4 income and that’ll be the amount you get taxed on . Do not incorporate. If you incorporate you must then file a T2 every year costing money, regardless whether you are earning income or not . It’s a personal choice whether to incorporate, and you should be sitting down with an accountant, however from the information given. Many people incorporate on a whim, and do not realize that even when their business activities stop, they are still obligated to file a tax return. Failure to file can lead to severe repercussions, ranging from a non compliance notice, to a estimate from the Government based upon past business filings. to bank account seizures.


https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002.html

It’s self employment income