Incorporate a Construction or Skilled Trades Company for $35
Incorporate your construction or trades company for $35.00, HST included, with government fees shown separately at cost. A CPA reads your WSIB position and your subcontractor arrangements first.
We prepare and file the articles of incorporation for your construction or trades company for $35.00, HST included, and every registry charge is listed beside it at the amount the government collects. Open Corporation for $35 is a department of Gondaliya CPA.
Two obligations decide your first year. The Workplace Safety and Insurance Board makes coverage mandatory for people who own or run a construction business, and the T5018 contract payment return is required once construction is more than half your business and you pay a subcontractor more than $500. A Chartered Professional Accountant reads your contracts before anything is filed.
Why Construction and Skilled Trades Incorporate
Active business income inside the $500,000 federal business limit is taxed at 9% federally and 2.2% in Ontario from 1 July 2026, a combined 11.2%. A framing contractor clearing $220,000 who lives on $110,000 leaves the balance taxed once, at that rate.
Trade income is seasonal. A strong year followed by a slow one pushes a proprietor into the top bracket once and wastes the low brackets the next. A corporation lets you draw a level amount across both.
General contractors, developers and property managers want a business number, an HST number, a WSIB clearance certificate and liability cover in the company name before they add you as a vendor.
Our Official Partners
The Rules That Matter for a Construction Company
Construction and the skilled trades use an ordinary corporation, not a professional corporation. There is no college, no certificate of authorization and no limit on who may hold a share. Four other rules do that work instead.
Subcontractor or employee. The Canada Revenue Agency asks what the parties intended, then tests the relationship on control, tools and equipment, the ability to subcontract or hire helpers, financial risk, investment and management, and the chance of profit. A framer with their own tools, price and WSIB account is a subcontractor. A helper you pay by the hour and supervise is an employee, whatever the invoice says.
Typical Share Structure for a Construction Company
| Share class | Who holds it | Voting | Dividend entitlement | Why it is there |
|---|---|---|---|---|
| Class A common | The working owner | Yes | Discretionary | Control and growth |
| Class B common | A spouse running estimating, invoicing and payroll | Yes | Discretionary | Dividend flexibility, if a split income exception is met |
| Class C non-voting common | An adult child or a working foreman | No | Discretionary | A profit share without control |
| Class D preferred | The working owner | No | Fixed, redeemable | Freezes value before a partner buys in |
| Class E preferred | The working owner | No | Fixed, redeemable | Consideration on a section 85 rollover of the equipment |
Section 120.4 of the Income Tax Act decides whether the Class B share pays. The excluded shares exception protects a holder 25 or older with at least 10% of the votes and value, but it fails where 90% or more of the business income comes from services, and a labour-only contract is a service. Contractors who supply materials as well as labour can fall outside that test, so we measure the sales mix before the shares are issued.
Otherwise most families rely on the excluded business test, usually an average of 20 hours a week of work in the business, which a spouse doing estimating, invoicing and payroll can meet if the hours are recorded. Where the test fails, a reasonable salary is paid instead.
HST for Construction and Skilled Trades
Construction services are taxable. Nothing a contractor supplies to a homeowner or a general contractor is exempt, so an Ontario job carries 13% from the first invoice once you are registered.
Common CRA Issues for Construction Companies
Subcontractor reclassified as an employee
A helper paid hourly on invoice while you supply the tools, set the hours and direct the work. The Canada Revenue Agency assesses CPP, EI and income tax, plus interest.
Missing or late T5018 slips
Subcontractors paid more than $500 each while construction is more than half your income, and nothing filed. The slips are matched against what those subcontractors reported.
Unreported cash work
Bank deposits that exceed reported revenue lead to net worth assessments.
Denied input tax credits
Supplier invoices missing a valid GST/HST registration number or the other details the regulations require.
HST missed on a new home
Building a house and then moving into it or renting it out, and reporting no tax on its fair market value.
Shareholder benefits
A personal truck, a home addition or materials for a family member’s house run through the company without a charge-back are taxed under subsection 15(1) of the Income Tax Act.
First-Year Compliance Calendar
| When | What is due | Who files it | What happens if it is late |
|---|---|---|---|
| Before the first site, and within 10 days of the first worker | WSIB registration for construction | The corporation, with the WSIB | A coverage gap, plus premiums and penalties |
| Week one to two | Business number and RC0001 corporate tax account | Your CPA | Nothing to file the T2 against |
| Before the first invoice | HST registration, required past $30,000 | Your CPA | Tax assessed on past sales, plus interest |
| Within 60 days of incorporation | Initial Return under the Corporations Information Act, no fee | Us, in the Ontario Business Registry | Non-compliance under that Act |
| Before each progress draw | WSIB clearance certificate for the general contractor | The corporation, with the WSIB | The draw can be held back |
| 15th of the month after each pay period | Payroll source deductions | The corporation | Penalty of 3% to 10%, 20% on a repeat |
| Within 53 weeks of incorporation | First fiscal year end chosen | Your CPA | Difficult to change afterwards |
| One month after the quarter end | HST return, quarterly filer | Your CPA | Penalty and interest where tax is owing |
| 3 months after year end | Corporate tax balance for a CCPC claiming the small business deduction | The corporation | Interest at the prescribed rate |
| 6 months after the period end | T5018 Statement of Contract Payments | Your CPA | Late filing penalties for each return |
| 6 months after year end | T2 return and Ontario Annual Return | Your CPA, and us | Late filing penalty, and non-compliance under the Corporations Information Act |
The first two checks decide most of the rest.
Your WSIB position
Whether you will be an executive officer doing construction work, an employer, or exempt. This sets your premium, your clearance certificates and whether the general contractor can pay you.
Who is working for you
Every person on your site is either a subcontractor with their own account and tools, or an employee who belongs on payroll. Getting this wrong is the most expensive mistake in the trades.
Your sales mix and the shareholders
Labour against materials drives the excluded shares test, and therefore whether a spouse can hold a dividend-paying share. We test each family shareholder before the classes are drafted.
Year end and HST
A year end set against the construction season and your cash, and an HST start date, including whether any work touches new homes or the self-supply rule.
Pay and the business limit
Salary against dividends tested for CPP, RRSP room and the employment income a mortgage lender wants to see, and whether a second company holding equipment or property would share your $500,000 business limit.
AFFORDABLE Incorporation Pricing for Contractors
Our fee is $35.00 with HST included. Every government fee is its own line, at the amount the government charges, never marked up.
| Item | Amount | HST | Total | Who charges it |
|---|---|---|---|---|
| Incorporation preparation and filing | $35.00 | Included | $35.00 | Open Corporation for $35 |
| Ontario Articles of Incorporation, filed online | $300.00 | Not applicable | $300.00 | Ontario Business Registry |
| Federal Articles of Incorporation, filed online, if you choose federal | $200.00 | Not applicable | $200.00 | Corporations Canada |
| Ontario NUANS name search report, named company only | $25.00 | Included | $25.00 | Ordered through us |
| Initial Return and Annual Return | $0.00 | Not applicable | $0.00 | Ontario Business Registry |
| Certificate of Status, if a customer or lender asks | $26.00 | Not applicable | $26.00 | Ontario Business Registry |
A numbered company needs no NUANS report. Minute book, bookkeeping, payroll, HST returns, T5018 slips and the T2 are quoted on request.
Our Services for Contractors
Our professional fees include HST. Government fees are separate, itemised and charged at cost with no mark-up.
NUANS Report for Contractors
The Ontario name search for a named company. Many contractors start with a numbered company and add an operating name later.
Incorporation Service for Contractors
Articles filed under the Business Corporations Act (Ontario), with share classes set for family members and a later partner.
Address Service for Contractors
A registered office address in downtown Toronto for the public register and corporate mail, separate from your home address.
Payroll Service for Contractors
Payroll for your crew, with source deductions remitted on time and T4 slips filed.
One Window Service for Contractors
The articles, the business number, the HST and payroll accounts and the Initial Return set up in one engagement.
Corporate Annual Filing for Contractors
The Ontario Annual Return filed in the Ontario Business Registry within six months of year end, with director and address changes kept current.
Corporate Tax Filing for Contractors
The T2 with GIFI statements, prepared from books that track holdbacks and work in progress.
Federal Incorporation for Contractors
A federal corporation suits a contractor working in several provinces. WSIB registration in Ontario is still required.
Holding Company Setup for Contractors
A holding company that takes surplus or equipment out of the operating company once it builds beyond working capital.
The Bundle for Construction and Skilled Trades
Incorporating is the first hour of the work. Afterwards Gondaliya CPA opens the business number and HST account, registers the corporation with the WSIB and keeps clearance certificates current so draws are not held, runs payroll for crews, tracks holdbacks and work in progress, prepares the T5018 slips, and files the HST returns and the T2. Ongoing work is quoted after a conversation about crew size, draw cycle and how many subcontractors you pay.
Why Contractors Use Us
Gondaliya CPA Professional Corporation is registered with CPA Ontario under firm registration number 61330051. Our clients have left us 1,300+ five-star Google reviews, and we work from 13 Ontario offices, open 9:00 AM to 8:30 PM, Monday to Sunday. We back every filing with a 30-day money-back guarantee and a 60-day fee-matching policy, and we are a Xero Partner Award Winner 2026. Open Corporation for $35 is a department of Gondaliya CPA.
- CPA Ontario firm registration number 61330051
- 1,300+ five-star Google reviews
- 13 Ontario offices
- Open 9:00 AM to 8:30 PM, Monday to Sunday
- 30-day money-back guarantee
- 60-day fee-matching policy
- Xero Partner Award Winner 2026
Google Reviews
Free CPA Consultation for Construction and Skilled Trades
Case Studies: Construction and Skilled Trades
Three Ontario trades files, each showing where the owner started and what changed before anything was filed.
Brampton Framer – Told to Invoice Through a Company
The problem: A framing contractor was told by a builder to invoice through a corporation before the next contract and had two helpers paid in cash.
What we did: We incorporated a numbered Ontario company, registered it with the WSIB as an employer, and moved both helpers onto payroll before the first draw.
The result:
- Ontario corporation filed at $335.00
- WSIB clearance ready for the first draw
- Helpers on payroll, not invoices
Hamilton Electrician – Moving a Proprietorship
The problem: A licensed electrician with a van, tools and steady commercial work had run as a sole proprietor for years.
What we did: We moved the van, tools and work in progress into the new corporation with a section 85 rollover and registered for HST before the first corporate invoice.
The result:
- No tax on the transfer
- HST recovered on the next van
- First T2 prepared by the same firm
Vaughan Renovator – Spouse Doing the Books
The problem: A renovation contractor wanted a spouse who handles estimating, invoicing and payroll to share in dividends.
What we did: We measured the labour and materials mix, recorded the spouse’s weekly hours, and issued a voting share only after the excluded business test was met.
The result:
- Split income test met before the first dividend
- Hours recorded weekly
- Share classes ready for a later partner
Six steps from the intake form to a company a general contractor can pay.
Send the intake form
Your trade, who works with you, the shareholders, and any contract a builder has sent.
A CPA reviews the file
Your WSIB position, subcontractors against employees, the share classes and how you plan to pay yourself.
The name
A numbered company needs no search. A named company is checked with a $25.00 NUANS report.
You approve the draft
You see the articles, the share classes and the registered office before anything is filed.
Filed online
The articles go through the Ontario Business Registry at $300.00, and you receive the certificate of incorporation.
Accounts and WSIB
Business number, HST, payroll and WSIB registration, so the company can be paid on its first draw.
Meet the Lead CPAs Behind Your Construction Company
A Chartered Professional Accountant checks your WSIB position and your subcontractors before anything is filed.
What Our Clients Say
These Google reviews belong to Gondaliya CPA Professional Corporation and cover every service the firm provides. See all reviews.
Incorporating a Construction Business Anywhere in Canada
We incorporate contractors and trades from thirteen Ontario offices, and the filing is electronic, so no visit is needed.
Construction Incorporation FAQs
Do I need WSIB coverage if I incorporate my construction business?
Can I avoid WSIB by calling myself an independent operator?
What is a T5018 and do I have to file one?
Is my labourer a subcontractor or an employee?
Do I charge HST on building a new house?
When must I register for HST as a contractor?
How much holdback can a customer keep from my invoice?
Should a contractor use the HST quick method?
Related Industries We Serve
Engineers
- Certificate of Authorization
- Project contracts
- Flexible share ownership
Cleaning Companies
- Crews and subcontractors
- WSIB and payroll
- Equipment purchases
Manufacturing
- Equipment and depreciation
- Inventory
- Payroll from day one
Franchise Owners
- Agreement review
- Leasehold improvements
- Buying a business
Read our Ontario incorporation service and the federal incorporation service for the wider rules.
Set Up Your Construction Company Properly
Complete the intake form and a Chartered Professional Accountant confirms the share structure, the year end and the HST registration date before anything is filed. Our fee is $35, HST included.
No legal advice. Gondaliya CPA Professional Corporation is a firm of Chartered Professional Accountants licensed by CPA Ontario, firm registration number 61330051. It is not a law firm. We prepare and file corporate documents and we provide accounting and tax advice. Nothing on this page is legal advice, and reading it creates no solicitor and client relationship. For legal advice, including advice on a shareholder agreement before you sign it, consult a lawyer licensed in the province where your corporation carries on business.
Open Corporation for $35 is a department of Gondaliya CPA.
