• For clients who work behind the scenes in the film industry -  you can work as an employee or through an incorporation owned by you.  Not all of you should be incorporated.  If you work on one show for long periods without providing tools or equipment you really are an employee.  But many really are self-employed, always looking for the next job, buying equipment for rental, and are working even when not on a show.  These people should be incorporated.

• As a general rule of thumb, you shouldn’t really consider it until you are making at least $70,000.

• A corporation is a “person under the tax laws of Canada”. It is hired by the production to provide your services. The job rate is negotiated and the start pack is signed by you as a representative of this company. The production pays the fees you negotiated to the corporation.  The corporation buys the tools and equipment and pays for all reasonable expenses to enable the employee to do their job.  Including paying you a wage.  The company deducts all these costs from the gross income.  The corporation then pays corporate tax on the remainder, at a much lower tax rate than you would. 

Documents to Bring In:

• BC Registry Steps to Incorporation: https://www2.gov.bc.ca/assets/gov/employment-business-and-economic-development/business-management/permits-licences-and-registration/registries-packages/pack_01_com_-_bc_company_incorporation_package.pdf

Incorporation Package: 

• Name search

• Incorporating

• Business Number Registration Application – completed and submitted to CRA

• All documents required for setting up bank account and assistance if needed

• Copies of your Certificate of Incorporation 

• Notifying you, EP, C&C, and/or the Production Company of Business Number once assigned

• Providing you with a client folder for your records, to assist you in maintaining proper company records

What to do once you are Incorporated:

• You have two important obligations each year once you have incorporated:

• File Annual Report with Corporate Registries, to ensure your company is in good standing. If the report is not filed, you risk your company being dissolved.  We check occasionally to make sure that is being done.  

• File your GST and Company Tax Returns on time (very important) each year. To prepare and file a Company Tax Return, your income and expenses must be processed in a manner that is acceptable to CRA. We can do all that for you if you keep all receipts.

Stage One offers a full-service package for Incorporated Companies, that includes the following

• Bookkeeping for your Quarter or Year-End including all necessary adjustments

• Calculating and remitting GST reports and payments annually or quarterly

• Preparing and filing your T4/T5 each year

• Preparing and filing your Personal Income Tax Return

• Preparing and filing your corporate Income Tax Return

FAQ:

How to contact the Corporate Registry:

• 1 877-526-1526 within Canada and USA

• 250-387-7848 outside of Canada and USA

• Mailing address: PO Box 9431 Stn Prov Govt, Victoria, BC, V8W 9V3

• Email: BCRegistries@gov.bc.ca

For further questions, please don’t hesitate to contact us!

How do I get a Corporate Taxation Account number?

• Whenever a company is incorporated, the CRA automatically assigns a Business Number (BN). This is the number CRA uses to identify your business.  

What is the Goods and Services Tax(GST)?

• If your sales exceed $30,000 a year, you must register for GST. If your sales are less than $30,000 a year, you don’t have to register but you can if you want to! If you don’t register you won’t need to charge GST to your customers, but you can’t claim as an input tax credit any GST that your company pays to its suppliers.

• Your GST number is your BN with RT added to the end of it.

 If you have any further questions regarding GST, please don’t hesitate to contact us!

What is Provincial Sales Tax(PST)?

• PST is also called Social Services Tax. This tax applies to businesses selling most types of goods and many types of services.

•  In Vancouver call or email the PST office to get a registration form: Phone: 1 877 388-4440 or Email: CTBTaxQuestions@gov.bc.ca. Or you can book an appointment with one of our accountants who would be happy to walk you through the PST registration process.

What if I have employees?

• If you employ people in your business (including you), you must obtain an employer’s Payroll Registration Number and withhold certain payroll deductions including income tax, Canada Pension Plan (CPP) and Employment Insurances (EI). 

• If you have any questions the CRA has an employer’s guide to payroll deductions and remittances at https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4001/employers-guide-payroll-deductions-remittances.html

•  Stage One can also do this for you 

• Employees who are major shareholders in your company may not be eligible for EI. 

• For further inquiries, please don’t hesitate to contact us!

What about WorkSafe BC?

• Almost every business in BC is required to register with the WSBC. Even if you are the only employee in the company you are most likely required to register. However, if you are working in the film industry and are the only shareholder you will be covered under the production. You must obtain a WCB exemption letter.

• For further information, please don’t hesitate to contact us! Or you may call WorkSafe BC at 1-888-922-2768.