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Employee vs incorporated consultant

Compare staying employed with becoming an incorporated consultant — money, security, freedom and time.

Being an employee or incorporated isn't only about salary. It's a choice between security, freedom, earning potential and lifestyle.

Weight your priorities

Adjust how much each dimension matters. The first 5 are normalized automatically.

Adjust the sliders to reflect your priorities.
25%
25%
15%
20%
15%
50

0 = very low, 100 = very high. Influences the robustness of the incorporated option.

60

How much you want to build your own practice.

Current situation: Employee

6

0 = very unsatisfied, 10 = very satisfied.

5

0 = very low, 10 = very high.

5

0 = closely supervised, 10 = fully autonomous.

New situation: Incorporated

Fill in both columns then run the analysis.

Results

Comparison between staying employed and going incorporated.

High clarity
The available information shows a clear difference between the options.
Total annual compensation (employee)
$97,000

Salary + bonus + estimated value of benefits.

Available for salary / dividends (incorporated)
$124,440

Gross revenue $139,840 – business expenses $13,200 – prudent reserve. Before tax.

Annual financial difference
+$27,440
Self-employment risk premium
$37,541

To offset the loss of benefits ($8,000), admin overhead and gaps between contracts, an emergency fund of around $6,600 is recommended.

Employee
Finances
78/ 100
Security
82/ 100
Freedom
41/ 100
Free time
100/ 100
Wellbeing score
55/ 100
Overall score
66/ 100
Incorporated
Overall score
Finances
100/ 100
Security
68/ 100
Freedom
85/ 100
Free time
100/ 100
Wellbeing score
55/ 100
Overall score
82/ 100
High clarity
Incorporation looks advantageous if you value autonomy and can maintain a high billable rate.

Decision summary

Best choice: Incorporated

Incorporation looks advantageous if you value autonomy and can maintain a high billable rate.

Overall score
82
Gap vs. runner-up
+16
Top influencing factors
  • 1Freedom
  • 2Finances
  • 3Security

This tool helps you reflect, not decide for you. Consult an accountant for the real tax impact.

Results

Risk tolerance (0-100)
50 / 100
Interest in building a business (0-100)
60 / 100
Self-employment risk premium
$37,541

Disclaimer

Decision Lab Studio is an educational decision-support tool. Results don't account for the detailed tax rules of each jurisdiction and don't replace advice from an accountant, tax specialist or financial advisor.

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