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Availability of products and service depends on licensing and product availability. maintains necessary corporate licensing in provinces across Canada. (o/a APOLLO Brokerage in the province of Ontario only) is a licensed retail brokerage, offering our clients with a comprehensive set of insurance solutions to meet their individual needs. We can help you understand the benefits of Business Insurance, and get the kind of protection you need in minutes.ĪPOLLO Insurance Agency Ltd. Related: How much does general contractor insurance cost? Regardless of your business or practice’s category, it’s crucial to figure out the proper insurance and tax implications to ensure you’re not liable to losses, damages, or unforeseen taxes. Independent contractors are ultimately a subset of self-employment. If you’re self-employed (including independent contracting), you should see an accountant for more information on how you’re taxed and arrange your affairs in the most tax-efficient manner. In determining whether you’re a contractor or employee, the CRA considers factors such as the degree of control the client has on you, whether the relationship is one of subordination, regularity of work schedule, and more. This can have a drastic effect on your after-tax income. If the Canada Revenue Agency (CRA) ultimately determines that you’re an employee of an organization and not a contractor, you could lose your ability to deduct expenses from your income. Independent contractors should be aware of what category they fall under, an independent contractor or an employee. As a self-employed person or independent contractor, you can generally deduct the expenses used to run your business, such as a laptop or phone or even the gas you use to get to meetings or worksites. Similar to insurance, the intricacies of your taxes differ depending on what your business does. Related: Does general liability cover independent contractors? Tax considerations for independent contractors versus self-employed It’s best to speak to a lawyer or insurance broker to learn more. Then, if a client exerts their indemnity-clause rights to cover any loss or damage, your insurance could cover the fallout. As a result, signing an indemnity clause is a good reason to purchase liability insurance. Additionally, agreeing to an indemnity clause may mean you agree to cover any loss, damage, or liability suffered by another party (usually your client). Some contracts require having specific insurance policies ready. A graphic designer’s insurance needs, ultimately differ from a personal trainer’s insurance needs.įor independent contractors, it’s essential to understand the details of your client contracts. This further applies to independent contractors. In contrast, an e-commerce entrepreneur who works from home may have different insurance needs. For example, a gym owner may need various liability insurance policies and property insurance. Self-employed people need insurance depending on their particular line of work. Insurance requirements for independent contractors versus self-employed In that case, you could still be self-employed but not an independent contractor because you’re not contracting with a specific client through your business process. However, suppose you’re selling a widget to anyone looking for it. You could be asked to design a logo, renovate an office, or sell a product as an independent contractor. However, not all self-employed people are independent contractors.Īn independent contractor explicitly provides a service to someone on a contractual basis. Self-employment means you’re earning money without being someone’s employee, and this definition also fits independent contractors. Unlike the frequent independent contractor versus employee debate, where someone is “either-or”, independent contractors are a subset of self-employment. What’s the difference between independent contractors and self-employed individuals?
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This article outlines the differences between these roles and how insurance and tax considerations may come into play.
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Many entrepreneurs are further confused about whether they are independent contractors or self-employed. But this isn’t only limited to sole proprietorships, partnerships, and corporations.
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A common question is how to carry on your business. When you run a business, you need to consider costs and expenses, revenues, taxes, business structures, etcetera.