Ask Experts Questions for FREE Help !
Ask
    Jeanne Arcand's Avatar
    Jeanne Arcand Posts: 4, Reputation: 1
    New Member
    		  
    #1

    Mar 24, 2008, 06:56 PM
    Can a shareholder of a co. be a subcontractor of the same co?
    Hi,

    I have a ltd. Company (Canadian) that has 2 shareholders. The one shareholder wants to be paid as a "subcontractor" of the company instead of taking withdrawals as shareholder. Is this possible?

    Thank you
    Jeanne
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Mar 25, 2008, 10:43 PM
    Yes it is possible, ONLY if the individual is doing actual work for the company and not simply getting the money for doing nothing.

    So if this one shareholder does not perform services for the company, you can't set it up that way, as the CRA will come down on you for it.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

If you are shareholder of a hugecompany. [ 1 Answers ]

Does general meeting of shareholder useful? If you are shareholder of a company ,will you attend the general meeting?

Subcontractor libility [ 1 Answers ]

I am a subcontractor for a city facilty maintennece and work under a main contractor . During my work at a vault at this facility a car has hit the vault hatch door and has minorly damaged the door and his bumper ( total damageabout $1000) My question is what is my liability if I have not put...

Subcontractor and Contractor laws [ 2 Answers ]

Hello my name is Paul, My father was a subcontractor at newspaper company and became a contractor after the person in charge left. The newspaper company made my father sign a contract without telling him what it was in regards to. However, my father didn't know because he didn't understand or...

Subcontractor relationship tax implications [ 1 Answers ]

I've recently separated from my employer to engage in private IT consulting / computer support. I came across an acquaintance who is in the same business and was overflowing with work to do. I've started handling some of his clients while maintaining my own business license and still working from...

View more questions Search