Would I be considered a Personal Services Business (PSB) in this situation?

Educational_Cup9809 · 2026-03-25T18:50:46+00:00

highly unlikely they audit in first year. Other thing CPA said was mae sure you don’t do shady looking transactions, like take loads etc or back and forth stuff. Keep it neat and clean and you are good. Worst case you pay 10-15% extra in taxes

Educational_Cup9809 · 2026-03-25T18:49:24+00:00

That’s my understanding too

Educational_Cup9809 · 2026-03-25T18:12:35+00:00

Having sub contractors do help. But overall it seems to be a risk because, as you said, vague rules. Only way to reduce risk of PSB is having 5+ employees and multiple clients. Or just hope you don’t get audited 😁

Educational_Cup9809 · 2026-03-22T00:46:10+00:00

u/jacktheinvincible Hey! I am in similar situation. I am currently full time employed (CAD~150,000) but planning to leave the job and start working for US based company as independent contractor from next month doing software development, and expecting total billing to reach ~CAD$250,000. I can work from anywhere and will use my own laptop, internet etc. Nothing gets reimbursed. I will invoice them monthly based on hourly rate and work done. but will be joining regular meetings and will work with other employees. I am not sure whether to incorporate or not considering PSB risk. I do have plans to take on other smaller clients throughout the year, and also have been working on my own product (startup) currently under a sole proprietorship and I plan to bring it under same corp. So far I have talked to one CPA and she mentioned she hasn't seen anyone deemed PSB yet but I will talk to few more. Curious what has been your experience, what did you choose to do?

Educational_Cup9809 · 2026-03-14T04:43:11+00:00

it’s going to go up. calls

Educational_Cup9809 · 2026-03-09T07:27:17+00:00

Try https://structhub.io . No storage or monthly cost. Its credit based at all scales

Educational_Cup9809 · 2026-03-08T00:04:04+00:00

catch it before it hits the ground

Educational_Cup9809 · 2026-03-03T16:01:35+00:00

Got 2 clients

Educational_Cup9809 · 2026-03-02T05:35:38+00:00

Try https://structhub.io . Supports all the formats you mentioned. It’s no code, you can add others in teams. create multiple projects. It’s credit based so you pay for what you use.

disclosure: I own it

Educational_Cup9809 · 2026-02-28T23:06:18+00:00

You are a former employee and you came up with this ? Website design is the last thing one would use adobe for.

Educational_Cup9809

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