As seen in our previous blog, the self-employed worker has several choices to make especially if he wants to do business in the new residential sector and/or in the commercial sector. But what about other choices and consequences?
What we need to understand is that basically, a contractor who wishes to obtain a specialized or general RBQ license will have access, without the need for competency cards, to the residential sector only (not the new residential). And you will understand that to do more with a license and get contracts in the new and commercial sector, the competency cards will be mandatory.
So, to deepen the impact between the self-employed worker or the incorporation and the choice of a specialized or general contractor license, let’s take a look to the restrictions that emanate from the CCQ.
Obviously, if the contracts obtained by a company are to be carried out at the residential sector only, the restrictions will be related to that of the license since the CCQ is not subject to them.
Self-employed and Specialized License
First, for the self-employed worker opting for a specialized contractor’s license. If the contracts are for the new residential or commercial sector here is a summary of the restrictions that will be encountered;
If the owner wishes to do the work alone (obviously we imagine that he holds a journeyman competency card for the work to be done),
- He can declare his hours in côte C (without a pension fund),
- The contract will have to be $30,000 or less,
- He will not be able to carry out work in the new residential sector,
- He will be able to make renovations in the commercial sector and will not be able to add new structures (e.g. the merchant wants a new terrace (not allowed) – the merchant wants to renovate his old terrace (allowed)) and finally,
- He cannot be subcontracted.
If the contractor wishes to hire employees, then there will be no more restrictions but he will not be able to declare hours.
Incorporation and Specialized License
For the incorporated company opting for a specialized contractor’s license. If the contracts are in the new residential or commercial sector, here is a summary of the restrictions that will be encountered;
- If the contractor works alone, he will have the same restrictions as the self-employed worker but only if he declares his hours in côte C. If he declares his hours in côte E, then there will be no restrictions which offers him the possibility of working alone or with employees.
Self-employed worker and General License
For the self-employed worker opting for the general license, it is obvious that this is not a good choice at the CCQ level.
- The contractor cannot work alone, so he must hire employees,
- The contractor cannot declare hours.
It is obvious that this option when the time comes to include the CCQ, is a very bad choice.
Incorporation and General License
In this situation, there is nothing catchy. No restrictions, no problems with working alone or with employees and the same for the hours to be declared.
This option is the least restrictive.
To summarize these choices, each one including a sole proprietorship (self-employed worker or partnership) involves many restrictions at the CCQ level. On the other hand, the choice of an incorporation taken either with a specialized or general contractor license offers good possibilities.
You have the main lines to help you make an informed choice.
