Utilize your financial knowledge, give your answer or opinion to the input question or subject . Answer format is not limited.

I'm currently unemployed and have been offered a contract position. Do I need to incorporate myself? How do I do it?
I am co-owner of a business, and we incorporated federally.  (Mostly to limit liability.)  There is some excellent information above, and most of my wisdom I got from a trusted lawyer and accountant (find experts you trust in these two areas, they will prove invaluable in so many areas.)   The one point I would add is that if you decide to incorporate, you can do so federally or provincially.  We were all set to go provincially, when our lawyer asked "Is there any chance you might move the business?  Any chance you might want to do work in other provinces?  What about next year?  Five years?"  If you are going through the expenses to set up a corporation, consider doing so federally, the extra costs were insignificant, but someday you might be glad you don't have to start from scratch.  In this day and age, many people end up moving out of province for work, family concerns, etc.