Freelancers & self-employed — getting started online
Freelancer (“pigiste”)
Understanding the term in Quebec
Although it comes from French journalism, in Quebec pigiste now broadly means a self-employed professional or incorporated contractor who provides services to businesses—often in tech, IT, design, writing, marketing, or consulting.
General definition
A pigiste is an independent worker who sells time, skills, or deliverables to one or more clients without an employment relationship. There is no special legal status called “pigiste” in employment standards or civil law—it is everyday language, not a legal category.
Incorporated freelancer (share corporation)
An incorporated freelancer operates through a share corporation, a legal entity separate from the individual. That opens access to a more flexible tax regime—notably the small business deduction under the Income Tax Act.
The corporation pays corporate tax at a combined rate of about 12.2% in Quebec (roughly 11% federal and 1.2% provincial) on the first $500,000 of active business income—core to Canada’s small-business tax system.
A key advantage is how you pay yourself: salary, dividends, or a mix, depending on tax planning.
- Salary is deductible to the corporation, creates RRQ/CPP room, and reduces corporate taxable income.
- Dividends are not deductible but benefit from dividend tax credits and are not subject to payroll charges.
Retained earnings can stay in the corporation to defer personal tax and support cash flow and long-term capitalization.
Become an incorporated freelancer
Complete the form below to start your new corporation
Self-employed (unincorporated)
A self-employed person operates as an individual without a separate corporate entity. All business income is personal income reported on the T1 (federal) and TP-1 (Quebec) returns.
Tax is at progressive personal rates, up to roughly 53% in Quebec when federal and provincial brackets combine. Unlike a corporation, there is no deferral: net income is taxed in the year it is earned.
Self-employed individuals pay RRQ contributions at 10.8% on eligible earnings (up to the maximum). Deductions include reasonable business expenses: rent, supplies, mileage, equipment amortization, etc.—but planning room is usually narrower than for a corporation.
What mainly distinguishes an employee or unincorporated self-employed person from an incorporated freelancer is tax rate: the corporation can access corporate rates, often more favourable than top personal rates.
| Worker type | Legal form | Taxation | Typical deductions | Payroll / social |
|---|---|---|---|---|
| Employee | Individual | ≈ 26%–53% (personal) | Very limited | Mandatory (RRQ, CPP, etc.) |
| Self-employed | Individual or sole prop | ≈ 26%–53% (personal) | Broad (office, vehicle, software, etc.) | RRQ (and QPIP rules may apply) |
| Incorporated freelancer | Share corporation | ≈ 12.2%–26.5% (corporate) | Broad (reasonable business expenses) | Optional (salary/dividend choices) |
Paying through a corporation, a freelancer can achieve a much lower combined tax rate than as an employee—sometimes 2–3× lower—depending on income mix and deductions.
How work is organized
Unlike occasional freelance work, many Quebec professionals hold long-term engagements—often 35–40 hours per week for one client—while staying contractors. They may work inside client teams in IT, project management, communications, or consulting.
Public-sector and large corporate clients use contractors to avoid full employment overhead (benefits, union rules, permanence).
In exchange, the freelancer bears business risk, invoicing, time off, and tax planning.