So I got an email about a job, and they require that I incorporate before I start

[spidey07]

you don't have to incorporate to be a 1099 independent contractor

Correct. Just tell them to pay you 1099. You'll still have to handle all the extra taxes as already mentioned.

 

[SN4p]

you don't have to incorporate to be a 1099 independent contractor

This is true.

I do some contract work as a 1099 only and I am not incorporated. It is just side money so it's not super important to me.

 

[rudder]

two characters

 

[Gunslinger08]

you don't have to incorporate to be a 1099 independent contractor

The company might require it based on recommendations from their lawyers. Might reduce their business insurance.

 

[CPA]

The company might require it based on recommendations from their lawyers. Might reduce their business insurance.

What business insurance. Him incorporating would not necessarily mitigate their liability, per se. Even if they argue that they contracted the work to him, they could still be held liable.

 

[CPA]

The other thing to be careful of is that if you do some work and get sued, the company can push most, if not all, of the liability on you since you are incorporated.

XYZ did not perform the work, they contracted out to your company (you as an individual that incorporated).

And I am assuming that you are not going to be carrying general liability, professional services, etc insurance. So, read whatever agreement they give you carefully, and look into this aspect.

Uh, the reason to incorporate is to limit personal liability.

 

[CPA]

Sounds like they don't want to hire you, they want to contract you. It wouldn't be a permanent employee position, it would be a temporary (maybe long term temporary) contractor position. They want you to incorporate so they can hire your "company" rather than you as an individual. This limits the possibility that you and others could successfully sue them for co-employment.

Now, this makes some sense and is a feasible reason.

Still think it's a scam.

 

[IceBergSLiM]

Why hasn't the op asked the employer?

 

[Sureshot324]

I did call the guy today and he was actually just a recruiter,not with the company itself. So basically I don't even know if they'll hire me yet. He's going to give them my resume. The incorporation thing is basically just like you all said. It's a 3-6 month contract and they do it for liability reasons, etc.. I would have to pay out of my own pocket (about $200) to get incorporated, and would probably need to get an account to do my taxes.

I told him to go ahead. If they offer me a job and none of my other job prospects pan out by then I'll take it while looking for something else. What sucks the most is I may not be able to get EI after the contract if I still haven't found another job.

 

[spidey07]

I did call the guy today and he was actually just a recruiter,not with the company itself. So basically I don't even know if they'll hire me yet. He's going to give them my resume. The incorporation thing is basically just like you all said. It's a 3-6 month contract and they do it for liability reasons, etc.. I would have to pay out of my own pocket (about $200) to get incorporated, and would probably need to get an account to do my taxes.

I told him to go ahead. If they offer me a job and none of my other job prospects pan out by then I'll take it while looking for something else. What sucks the most is I may not be able to get EI after the contract if I still haven't found another job.

I'd talk to the employment office directly to get the answer to that question. A lot has changed.

 

[Sureshot324]

So they offered me the job but I think I may turn it down. The agency initially said I'd be guaranteed 3 months minimum, but when I interviewed with the actual company they said 1-1.5 months + 2 weeks training. Basically they bought out part of another company and just need people to help with any problems that come up moving people to their system. Doesn't seem worth it for that short a time.

 

[JEDIYoda]

Ask if you get a night with the princess.

every post you make is so insightful.....

 

[Pr0d1gy]

Still think it's a scam.

Me too, there's so many fly by night "businesses" out there these days that take advantage of people who are only looking to put food on their table.

 

[StageLeft]

Sounds fvcking hokey unless that 2 weeks training is paid. if so, why not?