Thanks guys, but yes I'm Canadian. So different laws apply. What the company is doing now is operating in a grey area. If they were ever audited by the Canada Revenue Agency I'd say it's 50/50 as to how the CRA would rule on the tax evasion question.

If I register as a sole proprietorship, I automatically become self employed and lose employment insurance benefits. I can voluntarily opt into the employment insurance program and pay into the benefits scheme, but I'd only be eligible to collect under two circumstances, parental leve benefits if I became pregnant, or sick benefits if for some reason I became unable to work, say for example I had to repeat rehab or go inpatient again. Basically I have no job security in this scenario, and no safety net if they get rid of me so I need to really think it through.

As for the regulatory stuff - I need to do it to maintain my accounting designation, and I need to maintain it. First off I worked too hard getting it to let it lapse, and everything except the most basic bookkeeping jobs require a designation, so I'd have to go through the whole process with my accounting society's governing body.

Lots to think about.

splitimage