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To be a freelancer, you must be substantially in control of your own affairs, not subordinate to some other person or organization. If someone else can tell you what to do and when and how to do it, you are not a freelancer, you are an employee.
Freelancers can deduct business expenses, but employees cannot. Self-employed individuals are not covered by employment insurance.
In a partnership or collective, two or more people contribute their efforts, money or other resources to a common activity in the expectation that this will result in a profit to the members of the partnership. To avoid later disagreement, before embarking on such an enterprise the potential members of the partnership should decide how its net profit/deficit is to be divided among them and formalize this plan in writing. They can alter their decision any time by mutual agreement.
For example - Three dance professionals receive funding support as a collective; the funds are payable to the name of the collective. At the end of the project, the income must be allocated to each of the partners, and reported on their annual self-employed income.
FACT
You do not need to register self-employment or partnership for tax reasons, since the tax system is based on fact, not on the form of an income-earning activity. Some provinces have legislation requiring registration for reasons other than taxation.
Article originally contributed by Oliphant + White
LINKS:
Canadian Alliance of Dance Artists
See - Self-employed or not self-employed, a cautionary tale
www.cadadance.org/inde.htm
Canada Revenue Agency
See - Forms and Publications - Employee or Self-employed?
www.cra-arc.gc.ca/E/pub/tg/rc4110/README.html
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