Sole Proprietors
4FMV for Sole Proprietors
The 4FMV sites give you access to companies throughout Canada, who may be looking for your particular skills.
As a sole proprietor, you are very welcome to register as either a Seller or a Buyer – or both – but there are a few details you need to be aware of.
Sole Proprietors
A sole proprietorship is typically a business operated by one individual. A sole proprietorship is not considered to be a legal entity under the law, but rather is an extension of the individual who runs it. The individual has possession of the business assets and is directly responsible for the debts and other liabilities incurred by the business. The income or loss of a sole proprietorship is combined with the other earnings of an individual for income tax purposes.
A sole proprietorship is perhaps the easiest form of business to operate because it does not require any specific legal organization, except of course, the normal requirements such as licenses or permits and name registration. The business decisions are solely the result of the individual’s abilities.
The following link will tell you how easy this is: http://investincanada.gc.ca/eng/establish-a-business/faq.aspx?action=article&oid=20
Sales Taxes
Anyone invoicing $30,000 or more per year must register for GST/HST and apply GST/HST to invoices as appropriate to the province in which the work was done. For more information regarding GST and HST, check with Canada Revenue Agency or consult an accounting professional.
Companies located or working in Quebec and invoicing $30,000 or more per year must also register for QST and apply QST to invoices when the work is done in Quebec. For more information regarding QST, check with Revenu Québec or consult an accounting professional.
Income Taxes
While a T4 will be issued for a Sole Proprietor for hourly contracts, income tax will not be deducted. It is the responsibility of the Sole Proprietor to file a personal income tax return and pay all personal income taxes.
NOTE: A T4 will not be issued for fixed price contracts.
Setting your rate
The employee portions of EI and CPP/QPP will be deducted before you are paid. Please bear this in mind when setting your hourly rate.
We do not allow any Seller to set an hourly rate lower than the minimum wage for your province.
Registering as a Buyer
Sole proprietors may also want to buy professional services themselves from our Sellers.
In this case, you can register as a Buyer in the usual way – for more information see the Buyer zone.
If you have registered as a Seller, you will need to register again as a Buyer, as we use cookies to tailor the information you receive on the site, depending on whether you are a Seller or a Buyer.
