How Do I Get My Employer to Treat Me as a Business?

"Mitchhead" writes in the About Small Business: Canada Forum:

"I am a performance artist in Quebec. I work for Cirque Du Soleil but do a lot of freelance as well. I have been think about registering as a business but am not sure if I need too. I work under my own name when I do work freelance and I own a home and have a phone number in Quebec."

"The reason I am asking is because some times Cirque hires me for special events outside of what I normally do for them. The problem is since I am on their payroll they tax me on these services. I would prefer to use these occasions towards my own business. They said if I had a small business that they could do it this way."

My Reply

Actually, according to what you say here, you are already operating a small business. You are operating a sole proprietorship when you are freelancing and such a business does not need to have its business name registered (as long as you are operating as a sole owner under your own name with no additions).

So, on the surface, your situation is simple. All you should have to do is let the Cirque de Soleil know that you are a small business and that you want to be treated as a contractor/freelancer for the special events you mention.

However, the Cirque de Soleil may not see it that way. Many corporations will only recognize or do business with other corporations. They may try to insist that you incorporate your business before they will change your payroll status from employee to contractor. If this is so, you will have to decide whether changing your business structure is worth it to you or not.

See:

• How to Incorporate a Business in Canada
• Contractor or Employee: The CRA's Four Point Test

Have you experienced problems getting a corporate employer to recognize your unincorporated small business as a business? Comment below to let us know what the problem was and how you resolved it.