Things to consider before becoming self-employed
May 2022 – 15 min read
You’re self-employed if you contract with a business rather than getting a salary from an employer
Being self-employed has many distinct advantages and disadvantages
There are several signs you might be ready to become self-employed, and steps you can take to get there
Steps to take before becoming self-employed
Create an emergency fund – It may take a while to get your self-employment gig off the ground, so you should have saved enough money for 3 to 6 months of expenses. This fund can also provide financial security in case a creditor delays paying you.
Create a workspace – It’s important to have a dedicated workspace so you can concentrate and create work-life balance when you’re not working.
Now that you understand more about becoming self-employed, you may want to contact your advisor to:
Create a savings plan for an emergency fund and to pay your income tax when you become self-employed
Learn more about personal health and dental insurance
Create a retirement savings plan
The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.