Flag the change
SoloInc asks about changes in client, contract and working arrangement that may affect the corporation’s routine compliance and continuing fit.
High-intent guide
Could your corporation be a Personal Services Business?
A Personal Services Business question turns on the real working relationship, not just the fact that invoices come from a corporation. It needs to be raised early, especially when a contract or client arrangement changes.
What this can mean for you
These are the practical signs to raise early, before a routine item becomes an unresolved year-end issue.
- 01
One client or agency accounts for most of the corporation’s revenue.
- 02
A client controls working hours, location, tools, day-to-day priorities or approvals.
- 03
A renewal changes the working arrangement or removes business-like features.
- 04
You are asked to incorporate before taking on work that resembles employment.
How SoloInc handles the routine
SoloInc keeps ordinary compliance moving for eligible corporations. The owner provides complete records and answers the questions that need context.
Keep the underlying record
Contracts, statements of work, invoices, client mix and facts about how work is performed should remain organized. The paperwork alone does not decide the issue, but it helps establish the facts.
Maintain ordinary compliance
A possible PSB concern does not make routine records disappear. SoloInc continues ordinary work only within the agreed scope while the appropriate review is arranged.
Clear boundary
When this needs a closer look
SoloInc identifies the issue, explains the next step, and agrees separate specialist work before it begins.
- An arrangement where the worker could reasonably be considered the client’s employee without the corporation.
- A decision on PSB status, tax treatment, prior-year filing position or compensation planning.
- A high-stakes contract renewal or a CRA inquiry about the arrangement.
Common questions
Q.01Does one client automatically mean a PSB?+
No. Client concentration alone does not decide the issue. The full working relationship and the statutory conditions need to be considered.
Q.02Can SoloInc remove PSB risk?+
No. SoloInc does not promise a PSB outcome or include complex PSB analysis in the subscription. It identifies the concern and directs the owner to specialist review.
Q.03Why does this matter?+
CRA states that a PSB can have different tax obligations and limits on deductions. It is a question to address before relying on ordinary corporation assumptions.
Official reference: CRA: Personal services business fact sheet
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