When you are thinking of embarking in the world of information technology consultation (IT), several details are to be considered, especially if it is your first time. Whether you are looking for freedom and flexibility or want to expand your professional horizons, becoming an IT consultant can be an interesting decision.
Here are the first essential steps to make the jump:
1st step: The choice of the type of incorporation
To become an IT Consultant in Canada, you have two options: provincial or federal incorporation.
Choosing provincial incorporation, specifically in Quebec, can be faster and more economical. However, it’s important to note that the rules sometimes differ from those of the federal framework, particularly when it comes to issuing shares.
Provincial incorporation can be an asset when your company operates outside Quebec or uses English documentation.
Before you decide, study the advantages and implications of both possibilities, then choose the option that best suits your objectives as an IT consultant.
To enlighten you further, here are the costs associated with each of these options:
Throughout the incorporation process, several resources are available to ensure professional support. For example, the Quebec Association of IT Freelancers (AQIII) can support you in the provincial incorporation. In addition, it offers advantages such as access to legal and tax experts at reduced prices.
2nd step: Registration in the Enterprise Register
After choosing your type of incorporation, it is time to proceed to registration with the Enterprise Register. This step is crucial and guarantees the legality of your activity. To guide you through this process, take the time to read government information on registration. The precise steps are also detailed on the site of Enterprise Register.
Next, you will have to choose a name for your company. You have two options:
- You can request a digital designation (numbered company) to be used as a name. The digital designation assigned to you by the registrar will be made up of a number followed by the term “QUEBEC” and the mention “INC.”.
- You can propose a name for your company yourself. However, the name must comply with current laws and regulations.
3rd step: Registration with Revenu Québec
If this is your first entrepreneurial adventure, start by registering with Revenu Québec. For those who have already registered a business, simply fill out the form titled LM1. This step is crucial, in the case of a provincial incorporation, to ensure your tax compliance.
4th step: ClicSÉQUR Entreprises authentification
Online security is essential in the business world. If you have opted for provincial incorporation, obtain clicSÉQUR Entreprises authentication from the Quebec government to securely access the online services offered by various ministries and organizations.
5th step: financial management and accounting
Effective financial management is essential to maintain the success of your business.
To do this, you need to:
- Register for TPS / TVQ: Your company must obtain provincial and federal tax numbers that will allow you to bill and recover tax on your services. Make sure to keep your tax records up to date in accordance with the rules established by the tax authorities.
- Open a business bank account: To separate your personal finances from your business, open a dedicated business bank account. This will make it easier to manage your financial operations and help you avoid any accounting and tax confusion. Compare the rates offered by different banks to choose the account that best suits your needs.
- Maintain books of accounts: This involves methodically recording all your financial transactions, including income and expenses. Identify the origin of your income, amounts received, payment methods and billing references. This practice helps you keep a clear record of your financial operations, which is crucial for tax reporting and making informed financial decisions. If necessary, consider hiring a professional accountant to help you with this task.
6th step: Insurance subscription
As an IT consultant, you need to take steps to protect yourself and your business. It is important to take out adequate insurance to cover various risks to which you may be exposed.
Here are the main insurances to consider:
- Professional liability insurance: Covers errors and omissions related to your work.
- Civil liability insurance: Protects you and your business in the event of sudden or unforeseen events.
It is recommended to consult insurance experts to choose the best options according to your specific needs. It is also advisable to notify your insurer of your client’s contact information (and your intermediary agency, if necessary) for each of your mandates, by adding them as additional insured on your business insurance.
The first steps to becoming an information technology consultant are crucial to establishing a solid foundation as a freelancer in this constantly evolving field. From choosing between provincial or federal incorporation to insurance subscription, every step is essential to ensuring your success and compliance.
Find your next mandate with DELAN!
Whether you’re looking to set up as an independent consultant or expand your professional horizons, don’t hesitate to contact DELAN’s headhunting team. We’re here to guide you every step of the way, making sure you achieve your professional goals successfully.
Apply for a contract position and make a difference with our philanthropic program 1 don, 1 heure à la fois. As part of this program, DELAN will donate $1 of its income for each hour worked by its IT consultants to one of the 4 charities partnered with DELAN: Breakfast Club of Canada, Leucan, Centraide, et 60 million girls.