I'm in Canada, and am young and don't know anything about finance.
I've been working part-time as a software consultant for a friend who's starting a marketing company. He recently landed a job with a huge budget, and provided the funding comes through I will be leading up the development. Not really knowing what I'm doing with money, I wonder what the best course of action is to handle the 50-ish% income tax rate I'll be facing.
- It's a single project, and I'm not sure what kinds of work will come through after this
- My friend's marketing company is as of yet not incorporated
- I am also not incorporated, I just put my earnings in my personal bank account right now
- I am a student
Is there any way to lessen the blow of the income tax? Should I incorporate? Can I do tax write-offs if I'm just working independently? Can I do free work on the side and claim it as donations? Or am I just stuck giving away half of my earnings?