Quote:
Originally posted by Sugarphreak
printing business cards, No
setting up a company website, No
identifying each individual project and client on your invoices,No
carrying your own insurance, etc. No
This stuff has either nothing or very little to do with being assesed as a PSB
Accountants generally think they know what they are talking about, but really don't have a clue when it comes to this stuff. If you take the above items as your justification for claiming the small business deduction and you will get laughed out of the court room.
Leading case on this is Wiebe Door Services where the judge outlines specific tests (4 actually) to determine if the company is a personal services business. All judges will refer to this in any case that goes to court. Probably one of the most important things for any contractor to do is print that (it is online and for free) and understand it... then you can structure your company and conduct business in a way that supports it.
Biggest factors include having multiple clients, ownership of tools, financial risk, and ability to do your own work. In other words, if the company sets your hours, gives you a work station, provides an office, gives you any kind of training, and you get a steady paycheck... your odds of winning are very bleak.
If I am not correct, prior to this case the previous leading case stated that your business needs to be an accessory to another... not a critical part of it.
Dodging a PSB assesment right now is extremly hard as an office contractor, and it really comes down to what mood the judge is in. Your best defence is to keep your write off's low, change up your income patterns once in a while, and fly under the radar as much as possible.
So identifying individual clients on invoices is wrong, but having multiple clients helps? I've billed to over 15 clients on 45 different projects over the past 5 years.