Incorporation Is Worth Considering Once Your Self-employment Net Income Consistently Exceeds 80,000 To 100,000 Dollars Annually, Because The Small Business Corporate Tax Rate In Canada Is Significantly Lower Than The Personal Marginal Rate On Income In That Range. Below Those Income Levels, The Cost And Administrative Complexity Of Operating A Corporation Typically Outweigh The Tax Savings For Most Side Hustlers. A Tax Accountant Or Financial Coach Can Help You Model The Specific Break-even Point For Your Situation. For Most Side Hustles And Early-stage Self-employment Activities, Operating As A Sole Proprietor And Focusing On Maximizing Allowable Deductions Is The Right Starting Point.