Are you looking for a new job but are having trouble finding employment in a market plagued with dropping oil and gas prices? Instead of rummaging through job postings trying to work for someone else, you should consider working for yourself and being your own boss.

Despite the market downturn, companies are still in need of skilled individuals to assist in oil and gas projects. Many of these companies turn to independent contractors to help them get the job done. Companies may not be prepared to hire employees for these projects, especially in light of the oil and gas stock drop, but if you have marketable skills, they may be prepared to hire you on a contractual basis.

There are a number of advantages to being an independent contractor as opposed to an employee of a company. To name a few, as an independent contractor, you can perform work for a number of different companies as opposed to being limited to just one, you retain the rights to any intellectual property that you create while doing work for a company, and, as indicated above, you may be able to find work more effectively as an independent contractor as opposed to looking for work as an employee during a market downturn.

Of course, there are a number of disadvantages to being an independent contractor, one of the most significant being your exposure to liability. If you screw up a job as an employee of a company, generally only your employer would be held liable. If you screw up a job as an independent contractor, you may be held liable yourself.

One of the best things you can do to minimize the disadvantages associated with being an independent contractor is to incorporate a corporation and perform all of your contractor work through your corporation. There are significant advantages to incorporating, including the following:

1. If a matter becomes litigious, only your corporation would be exposed to liability as opposed to you in your personal capacity, and therefore, only your corporation’s assets are at risk as opposed to your personal assets.
2. Your corporation would be paid for the jobs you complete, and you may be able to save money by withdrawing your income from your own corporation on a tax-deferred basis.
3. Having a corporation bolsters your public image of being a reputable contractor.

In summary, if you are in need of work and are having a hard time finding employment as an employee of a company, you may want to consider becoming an independent contractor, in which event you should also consider forming your own corporation through which you perform your independent contractor work.

By Anthony Pranata of Aarbo Fuldauer LLP

For more information, please contact the law office of Aarbo Fuldauer LLP at:

Address: 3rd Floor, 1131 Kensington Road NW, Calgary, AB, T2N 3P4
Phone: (403) 571-5120
Email: [email protected]

Anthony Pranata
Barrister & Solicitor
www.aflawyers.ca

*The information contained in this blog is not legal advice. It should not be construed as legal advice and should not be relied upon as such. If you require legal assistance, please contact a lawyer*