Incorporate as an IT Consultant in Canada for $35
Start your IT consulting or software development corporation for $35, HST included. Government fees are separate. A CPA reads your contracts for personal services business risk and sets up HST before we file.
IT consulting and software development are not regulated professions, so you incorporate an ordinary business corporation, either federally under the Canada Business Corporations Act or provincially under the Business Corporations Act (Ontario). We prepare and file it for $35.00, HST included, and show each registry charge at the government’s own figure. Open Corporation for $35 is a department of Gondaliya CPA.
The question that decides whether incorporating pays is not the filing. It is whether the Canada Revenue Agency would treat your company as a personal services business, an incorporated employee, which loses the small business rate. A Chartered Professional Accountant reads your contracts and your client mix before the articles are filed.
AFFORDABLE Incorporation for IT Consultants and Software Developers
Banks, insurers, governments and the large staffing agencies that supply them often contract only with a corporation. If you want the contract rate rather than a T4, you usually need a company first.
Active business income within the $500,000 federal business limit is taxed at 9% federally and 3.2% in Ontario, a combined 12.2%. A consultant billing $180,000 and living on $100,000 leaves the difference in the company at that rate.
That rate only holds while the company is a real business. If it looks like an employee with a corporate name, the combined rate in Ontario rises to 44.5% and most deductions disappear, so the structure has to be right from the first contract.

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Rules That Apply When You Incorporate as an IT Consultant
There is no professional corporation, college or licence for IT work in Canada, and no rule on who may hold shares. The rules that matter come from the Income Tax Act, the Excise Tax Act and, for some consultants, immigration law.
Typical Share Structure for an IT Consulting Corporation
| Share class | Who holds it | Voting | Dividend entitlement | Why it is there |
|---|---|---|---|---|
| Class A common | The consultant | Yes | Discretionary | Control of the company and its contracts |
| Class B common | A co-founder or second developer | Yes | Discretionary | Two people building one business |
| Class C non-voting common | A spouse working in the business | No | Discretionary | Dividends where a TOSI exception applies |
| Class D preferred | An investor or the founder | No | Fixed, redeemable | Seed money, or a value freeze before growth |
| Class E common | A holding company | Yes | Discretionary | Surplus moved out of the operating company |
Section 120.4 of the Income Tax Act decides whether the Class C shares can be paid anything. The excluded shares exception fails where 90% or more of business income comes from services, which is almost always the case for a consulting company. What remains is the excluded business test, an average of at least 20 hours a week in the business, and the rule that frees dividends to a spouse once the owner turns 65.
A software company selling licences or subscriptions rather than hours can be in a different position, so a CPA tests the revenue mix before any family dividend.
HST for IT Consultants and Software Developers
Consulting, programming and software services are taxable. A service supplied to a client in Ontario carries 13% HST, a client in another province is charged that province’s rate, and a client outside Canada is generally charged nothing.
Common CRA Issues for IT Consulting Corporations
Personal services business reassessment
Triggered by one client for several years, a client laptop and email address, set hours and a manager who directs the work. The small business deduction is denied and the combined Ontario rate becomes 44.5%.
HST never charged
Triggered by a contractor who passed $30,000 and kept invoicing without HST. The CRA assesses the tax that should have been collected, usually out of your own margin.
Cash drawn as a shareholder loan
Triggered by withdrawals with no salary or dividend declared. A balance still owing a year after the company’s year end is added to your income under subsection 15(2).
Spouse dividends with no exception
Triggered by a T5 to a spouse who does no work in the business. A consulting company cannot use the excluded shares exception, so the dividend is taxed at the top rate.
Personal costs as business expenses
Triggered by a family car, home renovations or holidays booked as conference travel. Personal use is a shareholder benefit under subsection 15(1).
The normal reassessment period for a CCPC is three years under subsection 152(3.1); paragraph 152(4)(a) removes it for misrepresentation from carelessness or wilful default.
First-Year Compliance Calendar
| When | What is due | Who files it | What happens if it is late |
|---|---|---|---|
| Before the contract is signed | Corporation incorporated and named as the contractor | Us, Corporations Canada or the Ontario Business Registry | The agency pays you personally, or the start date slips |
| Week 1 | Business number, RC0001 and RT0001 HST accounts | Your CPA, with the CRA | No HST number for the first invoice |
| Before the first US invoice | Form W-8BEN-E in the corporation’s name | The corporation, to the client | US withholding on payments, or payment held |
| Within 60 days of incorporation | Ontario Initial Return, for an Ontario corporation or a federal one registering in Ontario | Us, Ontario Business Registry | Non-compliance. No fee |
| Before the first salary | RP0001 payroll account | Your CPA, with the CRA | Nothing to remit deductions against |
| 15th of each month | Payroll source deductions on your salary | The corporation, to the CRA | Penalty of 3% to 10%, 20% on a repeat |
| One month, three months or a year after each period | HST return, by filing frequency | Your CPA, with the CRA | Late filing penalty and interest |
| Within 53 weeks of incorporation | First fiscal year end chosen | Your CPA | Hard to change once the first T2 is filed |
| Last day of February | T4 and T5 slips for salary and dividends | Your CPA, with the CRA | Late filing penalty per slip |
| 3 months after year end | Part I tax balance for a CCPC | The corporation, to the CRA | Interest from the day after |
| 6 months after year end | T2 return and Ontario Annual Return | Your CPA, and us | Late penalty, then cancellation of the corporation |
| Within 60 days after the anniversary | Federal annual return, $12, for a federal corporation | Us, Corporations Canada | Dissolution after repeated defaults |
We start with your clients and your contracts, because they decide whether the corporation is a business or an incorporated employee.
Your client mix
One long engagement through an agency looks very different from several clients, your own website and your own equipment.
The contract terms
Control, tools, substitution, the right to work for others and how you are paid, read against the personal services business test.
Federal or Ontario
Where your clients are, whether the name needs national protection, and whether the directors meet the federal residency rule.
HST setup
Registration date, filing frequency and whether the quick method saves money on your margin.
Foreign clients
Zero-rating, the W-8BEN-E for US clients, a US-dollar account, and whether any work is done while physically in the US.
How you pay yourself
Salary for RRSP room and CPP, dividends for flexibility, and the TOSI position of any family shareholder.
Products and SR&ED
Whether you are building software of your own, and keeping the records an SR&ED claim needs from the first sprint.
Status and year end
Your immigration status where relevant, and a fiscal year end that suits your contract cycle.
AFFORDABLE Incorporation Pricing for IT Consultants
Our fee is $35.00 with HST included. Government filing fees are passed through at cost with no mark-up, and every total below is final.
Ontario Provincial Incorporation
| Service | Final Fee | Frequency |
|---|---|---|
| Ontario named corporation – Government filing CAD 300 + NUANS CAD 25 + our incorporation fee CAD 35 | CAD 360 | One-time |
| Ontario numbered corporation – Government filing CAD 300 + our incorporation fee CAD 35 | CAD 335 | One-time |
| Our professional incorporation fee component | CAD 35 | One-time |
| NUANS name search | CAD 25 | One-time |
| Annual Virtual Registered Address Service Package | CAD 900 | Annual |
Federal Incorporation – Based in Ontario
| Service | Final Fee | Frequency |
|---|---|---|
| Federal named corporation based in Ontario – Government filing CAD 200 + NUANS CAD 38 + our incorporation fee CAD 35 | CAD 273 | One-time |
| Federal numbered corporation based in Ontario – Government filing CAD 200 + our incorporation fee CAD 35 | CAD 235 | One-time |
| Our professional incorporation fee component | CAD 35 | One-time |
| Federal NUANS name search based in Ontario | CAD 38 | One-time |
| Annual Virtual Registered Address Service Package | CAD 900 | Annual |
Our Services for IT Consultants and Software Developers
Our professional fees include HST. Government fees are separate, itemised and charged at cost with no mark-up.
NUANS Report for IT Consultants
The name search a named consulting or software company needs, Ontario or federal, with your choices screened before one is bought. A numbered company needs none.
Incorporation Service for IT Consultants
Articles drafted for you, a co-founder or a future investor, with the corporation in place before the agency contract or the first client invoice.
Address Service for IT Consultants
A registered office address in downtown Toronto, so a remote consultant’s home address stays off the public register and client contracts carry a business address.
Payroll Service for IT Consultants
The payroll account for your own salary, source deductions worked out each pay run, and T4 slips filed before the February deadline.
One Window Service for IT Consultants
The articles, the business number, the HST and payroll accounts and the first year of filings handled through one person, so the first invoice goes out on time.
Corporate Annual Filing for IT Consultants
The Ontario Annual Return or the federal annual return filed on time, with director and address changes reported, so agency compliance checks pass.
Corporate Tax Filing for IT Consultants
The T2 with GIFI statements, equipment in the right capital cost allowance classes, and salary and dividends reconciled to the T4 and T5 slips.
Federal Incorporation for IT Consultants
A federal corporation for a consultant with clients across Canada, with the name protected nationally and the director residency rule checked before filing.
Holding Company Setup for IT Consultants
A holding company that takes surplus cash out of the operating company, away from client and contract risk, with the $500,000 limit shared deliberately.
The Bundle for IT Consultants
After incorporation the accounting moves to the parent firm. Gondaliya CPA keeps the books, issues and tracks invoices, files the HST returns on the method that suits your margin, runs payroll for your salary, prepares the T2 and the annual return, sets the salary and dividend mix each year, reviews new contracts for personal services business risk, and prepares SR&ED claims for software you build.
Why IT Consultants Use Us

Gondaliya CPA Professional Corporation is registered with CPA Ontario under firm registration number 61330051. 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
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Free CPA Consultation for IT Consultants
Case Studies: IT Consultant Incorporation
Three Ontario technology files, each showing where the consultant started and what changed before anything went to the registry.
Toronto Developer – Two Years at One Bank Through One Agency
The problem: A Toronto Java developer had been placed at the same bank for two years through a staffing agency, on the bank’s laptop and the bank’s hours, and was about to incorporate because the agency asked for a corporation. His plan was to leave everything in the company at 12.2%.
What we did: We incorporated a numbered Ontario company and walked through the personal services business test against his actual contract. He renegotiated the right to take other work, moved to his own equipment, and kept a second, smaller client, and we set a salary to reduce what would be exposed if the CRA disagreed.
The result:
- Numbered Ontario corporation filed at $335.00
- PSB risk documented against the contract
- Salary set to limit exposure
Mississauga Consultant – US Clients Billed With HST
The problem: A Mississauga cloud architect worked remotely for three US companies and one Toronto client. She had been adding 13% HST to every invoice, her US clients were refusing to pay it, and one of them had started withholding 30% because no tax form was on file.
What we did: We incorporated federally for name protection, registered for HST, and zero-rated the services to non-resident clients while charging 13% to the Toronto client. We prepared the W-8BEN-E in the corporation’s name, opened a US-dollar account and moved her to the quick method.
The result:
- Federal corporation filed at $235.00
- US invoices at 0%, Ontario invoice at 13%
- W-8BEN-E on file with each US client
North York Founders – A SaaS Product and No Records
The problem: Two developers in North York were building a scheduling platform at night and planned to incorporate once they had revenue. They were solving hard problems in real-time sync but keeping no record of what they tried, and had agreed to split ownership on a handshake.
What we did: We incorporated with two voting classes and a preferred class for a future angel investor, kept the company Canadian-controlled, and set up a simple SR&ED log of hypotheses, experiments and results from the first sprint. Their equipment and software went into the company’s capital cost allowance classes.
The result:
- Ownership set out in the share classes
- CCPC status protected for SR&ED
- Experiment records kept from day one
Six steps from the intake form to a corporation that can sign the agency contract and send its first invoice with an HST number on it. You always know what is with us, what is with the registry and what comes next.
Send the intake form
Owners, shares, where your clients are, whether you work through an agency, and your contract start date. It takes about ten minutes.
A CPA reviews the file
Personal services business risk, federal or Ontario, HST method, foreign clients and the year end. Questions come back the same working day.
Numbered or named
A numbered company needs no search. A named one needs a NUANS report, $25 for Ontario or $38 federally, and we screen your choices before paying for one.
You approve the draft
You see the articles, the share classes, the directors and the registered office before anything is submitted. Changes cost nothing at this stage.
Filed online
Federal articles go through Corporations Canada and Ontario articles through the Ontario Business Registry. An online filing is processed on submission and the certificate is emailed to you.
Ready to invoice
The business number with HST and payroll accounts, the Ontario registration for a federal company, the W-8BEN-E for US clients, and the minute book.
Meet the Lead CPAs Behind Your IT Consulting Corporation
A Chartered Professional Accountant checks your contracts, the personal services business risk and the HST setup 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 as an IT Consultant Anywhere in Canada
We incorporate IT consultants and developers from thirteen Ontario offices and remotely across Canada. The filing is electronic, so no visit is needed. A federal corporation can be filed for a consultant in any province, and a provincial one where that suits better, with the registry fee confirmed in writing first.
IT Consultant Incorporation FAQs
How much does it cost to incorporate as an IT consultant in Canada?
Should an IT consultant incorporate federally or in Ontario?
What is a personal services business?
How do I reduce the personal services business risk?
Do staffing agencies require IT consultants to incorporate?
Do IT consultants charge HST?
Should my IT consulting corporation use the HST quick method?
Do I charge HST to clients in the United States or overseas?
Can software development qualify for SR&ED tax credits?
Should I pay myself a salary or dividends?
Can I pay my spouse dividends from my IT consulting corporation?
Can I incorporate in Canada while on a work permit?
What can my IT consulting corporation deduct?
Related Industries We Serve
Management Consultants
- Personal services business test
- HST quick method
- Salary and dividend mix
SaaS and Software Start-Ups
- SR&ED records and claims
- Investor share classes
- Subscription revenue timing
E-commerce and Exporters
- Zero-rated foreign sales
- US-dollar accounts
- Cross-border paperwork
Engineering and Technical Consultants
- Agency contracts
- Equipment and CCA
- Federal incorporation
Incorporate Before Your Next Contract
One form puts a corporation in place before the agency contract or the first client invoice. Pay $35 including HST, and a CPA checks the PSB risk, the HST setup and the shares first.
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 client contract, an agency agreement or a shareholder agreement before you sign it, consult a lawyer licensed in the province where your corporation carries on business.

