With free incorporation, your contractors now have a ton of options open to them. Like these: We at CA4IT build important relationships with new independent contractors. And that's just a start:   Avoid high personal tax rates by retaining earnings within a corporation. Maximize business expenses to reduce tax payable. Split income with family members to reduce taxable income. Access retained earning by borrowing from the corporation. Disperse income in a tax effective way by declaring dividends. Establish a family trust and split income with your children over the age of 18. Save approximately $2,550 per year in Employment Insurance Premiums (EI).     We gain satisfaction providing a value added service. We earn referral business from contract staffing firms like yours.