Incorporated Truck Driver (“Driver Inc.”) in Quebec: How It Works and the Risks You Need to Know
A truck driver can incorporate in Quebec for $497 all-in, including the $397 government fee, through an online form that takes about 20 minutes. But the “Driver Inc.” model is closely watched by Revenu Québec and the CRA: this guide explains how to do it — and the real tax risks that most websites never mention.
Every profession has its own incorporation rules. See our guides for the agency nurse, the physician (CMQ rules) and the real estate broker (OACIQ rules).
Does a truck driver have the right to incorporate? What it legally means
Yes. Incorporating creates a legal person separate from you: a Quebec corporation with its own NEQ, which signs the transport contracts, invoices the carriers and files its own tax returns. You are its shareholder and director, and you generally pay yourself a salary or dividends.
Your main recurring obligations:
- Registrar of Enterprises: an annual updating declaration and $106 in annual rights — our guide to the Quebec Enterprise Register covers these obligations in detail;
- Corporate income tax: a federal return (T2) and a Quebec return (CO-17) every year, separate from your personal return;
- Sales taxes: above the small supplier threshold, your corporation must generally register for GST/QST and charge the taxes on its transport invoices;
- Bookkeeping: invoices, contracts, mileage logs and corporate records to keep.
Starting with the 2025 tax year, the tax authorities’ visibility into the sector has changed: your Driver Inc.’s revenue is now reported directly to both levels of government by the companies that hire you, through mandatory slips (Relevé 1 and T4A) — the details are in the tax section, below.
Why do carriers require drivers to incorporate?
Many carriers require their drivers to invoice through a corporation rather than being hired as employees. This generally spares the carrier source deductions, employer contributions and benefits, and shifts those costs — and the risks — onto the driver. The model is controversial and increasingly tightly regulated.
Concretely, when you become a “Driver Inc.”:
- The carrier no longer pays you a salary — it pays fees to your corporation against an invoice;
- No more source deductions: you become responsible for your own taxes, contributions and filings;
- No more employee-status benefits: vacation, employment insurance, indemnities and labour-standards protections generally no longer apply the same way;
- You take on a corporation’s obligations: corporate income tax returns, annual update with the REQ, record-keeping.
The industry itself calls this setup problematic when it serves only to disguise employment: the Association du camionnage du Québec speaks of the “Driver Inc. scheme,” and both Ottawa and Quebec City have tightened the sector’s rules in recent years. If a company makes incorporation a condition of giving you contracts, you are free to accept — but do it knowing the rules of the game, explained below.
How to incorporate as a truck driver, step by step
The process boils down to incorporating a corporation with the Registrar of Enterprises, obtaining your NEQ, opening a business bank account, then registering for taxes if required. Doing it yourself, count on $397 in government fees and several hours; with Incorp-Québec, $497 all-in and a form of about 20 minutes.
| Step | In practice |
|---|---|
| 1. Incorporate the company | Articles of incorporation filed with the Registrar (numbered company or official name) |
| 2. Reserve a name (optional) | Only if you want an official name rather than a number |
| 3. File the initial declaration | Directors, shareholders, head office address |
| 4. Open the business bank account | With the certificate of incorporation and the NEQ — see our business bank account guide |
| 5. Register for GST/QST and source deductions | Generally required once you invoice beyond the threshold, or as soon as you hire — our GST/QST tax numbers guide covers the process |
| 6. Maintain the corporation | Annual update with the REQ |
For a driver, a numbered company (e.g. 1234-5678 Québec inc.) is generally enough: carriers require a valid corporation with an NEQ, not a brand name. That is exactly what the Essential package at $497 covers — government fees, articles, initial declaration and numbered company included.
Your trucking corporation for $497, government fees included
A form of about 20 minutes, articles prepared and verified, filed directly with the Registrar of Enterprises. Numbered company included — the format carriers ask for most often.
How much does it cost for a truck driver to incorporate in 2026?
At minimum, count on $397 in government fees doing it yourself. With Incorp-Québec, the Essential package at $497 all-in covers the government fees, the articles, the initial declaration and the numbered company; the Complete package at $697 adds the official name, the GST/QST and source deductions registrations, and express service.
| Item (2026) | Amount |
|---|---|
| Certificate of incorporation (Registrar) | $397 ($595.50 priority) — included in our packages |
| Name reservation (optional) | $27 |
| Initial declaration | No fee within the prescribed deadline |
| Incorp-Québec — Essential (numbered company, articles, initial declaration, government fees included) | $497 all-in |
| Incorp-Québec — Complete (+ official name, GST/QST and source deductions registrations, express service) | $697 all-in |
| Annual rights to the Registrar (recurring) | $106 per year |
The full cost breakdown is in our guide to Quebec incorporation costs.
What taxes once you’re incorporated?
A trucking corporation that qualifies as a genuine small business generally pays a combined tax rate of about 11% to 12% on its first profits, versus about 44.5% for a corporation reclassified as a PSB — a risk detailed in the next section. Between those two extremes, your actual situation — salary, dividends, eligible expenses — is something to plan with an accountant, based on your case.
Useful reference points:
- Reduced rate or not: the federal SBD (9% rate) assumes a corporation carrying on a genuine business. In Quebec, the provincial SBD is, in addition, generally subject to a paid-hours test (5,500 hours per year, with a gradual reduction below that threshold), which a single-driver corporation does not always meet — a point your accountant should validate from year one;
- Salary vs. dividends: salary is deductible for the corporation and contributes to the QPP; dividends are not deductible. For a corporation at risk of PSB treatment, paying out most of the revenue as salary generally reduces the impact of a reclassification, since salary remains deductible;
- GST/QST: above the small supplier threshold, your corporation charges the taxes on its transport services and claims its credits on its purchases (fuel, maintenance, equipment), under the applicable rules;
- Slips to watch: starting with the 2025 tax year, a trucking company that pays fees to a driver’s corporation (a Canadian-controlled private corporation in the same sector) must generally file a Relevé 1 (box O, code RD) with Revenu Québec, and a T4A slip (box 048) with the CRA for fees exceeding $500 in the year. These amounts must match the revenue reported in your CO-17 and T2 returns — and in December 2025, the CRA lifted its moratorium on T4A-related penalties in trucking, effective as of the 2025 tax year.
Incorporation generally becomes worthwhile when profits stay in the corporation over time: our guide When should you incorporate in Quebec? puts numbers on that mechanism. For an overview of the process and the packages, see our page on incorporating in Quebec online.
What is the real risk? PSB reclassification, explained honestly
The main risk of the Driver Inc. model is being reclassified as a personal services business (PSB — in French, entreprise de prestation de services personnels, or EPSP**)**. If, without your corporation, you would reasonably be considered an employee of the carrier, Revenu Québec and the CRA can strip your corporation of the small business deduction, deny most of its expenses and reassess retroactively.
Revenu Québec devotes an entire page to the tax rules for truckers and road carriers, and the CRA has run audit campaigns specifically targeting the trucking industry. This is not a theoretical risk.
The criteria examined revolve around the real relationship of subordination: who controls your schedule, your routes and your work methods; who owns the truck; who bears the financial risk; whether you work for a single company the way an employee would. A corporation is generally caught by the PSB rules when the driver-shareholder personally performs the services, holds at least 10% of the shares, and the corporation has five or fewer full-time employees.
The consequences of a reclassification:
| Consequence | What it means in practice |
|---|---|
| Loss of the small business deduction (SBD) | Federally, PSB income is taxed at 33% (the 28% general rate plus a 5% additional tax) instead of the reduced 9% rate |
| High combined rate | With Quebec’s 11.5% general rate, the combined rate generally reaches about 44.5% |
| Denied expenses | The corporation’s deductions are essentially limited to the salary and benefits paid to the driver-shareholder: meals, cell phone, vehicle and office expenses are generally denied |
| Retroactive effect | The reclassification can reach back over several past tax years, with additional tax, interest and, depending on the case, penalties |
And since 2025, the blind spot is gone: with the mandatory slips in the sector (Relevé 1 and T4A — see the tax section, above), the tax authorities can see exactly which carriers pay which drivers’ corporations, and for how much.
Most incorporation services never mention the PSB rules. We would rather you incorporate with your eyes open: our role is to prepare your documents correctly, not to sell you a structure that could backfire on you. If your situation looks like disguised employment, talk to a tax specialist before signing with the carrier.
How to reduce the risk of reclassification?
You reduce the PSB risk by genuinely behaving like an independent business: several clients rather than one, a truck you own or lease, control over your schedule and routes, and real financial risk. None of these measures is a guarantee: it is the overall facts that count.
The elements that generally weigh in favour of genuine business status:
- Several clients: invoicing more than one carrier over the course of the year, rather than de facto exclusivity;
- You own the truck (or your corporation leases it): drivers who drive the carrier’s truck, with no investment and no maintenance costs of their own, match the exact profile the authorities target;
- Control over your work: freedom to refuse a run, to choose your routes, your hours and your methods;
- Real financial risk: expenses borne by the corporation (fuel, maintenance, insurance, permits), pricing per trip or per kilometre rather than per hour;
- A business with a life of its own: a written service contract between your corporation and the carrier, proper invoices, and the ability to have the work performed by a qualified replacement when the contract allows it.
Before signing with a carrier that requires an inc., have the contract reviewed by a tax specialist or a lawyer: how the contract handles exclusivity, schedules and the truck weighs heavily in the analysis. One hour of consultation costs far less than a reassessment covering three tax years.
FAQ — Incorporated truck drivers in Quebec
Can a carrier force me to incorporate?
A carrier can make incorporation a business condition for giving you contracts. But be careful: incorporating does not change your real status. If, in fact, you work like an employee, the tax authorities can reclassify the relationship despite the existence of your corporation.
What exactly is “Driver Inc.”?
It is a driver who provides services to a carrier through their own corporation rather than as an employee. The term is often used critically to describe setups where the driver drives the carrier’s truck, follows its schedule and has only one client — disguised employment in the eyes of the authorities.
What is a personal services business (PSB) and why does it concern me?
A personal services business is the tax status assigned to a corporation whose shareholder would, without it, be an employee of the client. The consequences: loss of the reduced rate (33% federally instead of 9%), almost all expenses denied, and potentially retroactive reassessments over several years.
How much does it cost for a truck driver to incorporate in 2026?
At minimum, $397 in government fees doing it yourself. With Incorp-Québec, $497 all-in (government fees, articles, initial declaration, numbered company) or $697 with an official name, GST/QST and source deductions registrations, and express service. After that, $106 in annual rights to the Registrar. Details in our cost guide.
Will I pay less tax once incorporated?
Generally, yes — if your corporation is a genuine business and you leave profits inside the company. But if it is reclassified as a PSB, you will generally pay more tax than an employee, with fewer protections. That is the whole paradox of Driver Inc.: the answer depends entirely on your real situation.
Numbered company or official name for a truck driver?
A numbered company is generally enough: carriers want a valid corporation with an NEQ, not a brand. It is included in the Essential package at $497. The official name (Complete package at $697) becomes relevant if you are building your own transport business with your own client base.
Should I incorporate federally if I drive in several provinces?
Federal incorporation costs $200 online, but a federal corporation active in Quebec must generally add $397 for its registration with the REQ — $597 in total. Driving in other provinces does not require a federal corporation: a Quebec inc. can generally do interprovincial hauling. The choice depends on your situation.
What if I’m worried I’m already caught by the PSB rules?
See a tax specialist quickly. Adjustments are often possible: paying out most of the revenue as salary (deductible even for a PSB), diversifying your clients, revisiting the contract with the carrier, documenting your real independence. The earlier the correction, the smaller the retroactive exposure.
Ready to incorporate — with your eyes open?
If incorporation is the right structure for your situation as a truck driver, you might as well do it properly and at the best price: $497 all-in, including the $397 government fee, with the numbered company and the initial declaration with the REQ included. And if your situation resembles the PSB scenarios described above, have it validated by a tax specialist before signing with the carrier — that is the best investment in this guide.
Your truck driver incorporation — $497 all-in
A form of about 20 minutes, articles of incorporation, initial declaration with the REQ and government fees included. A transparent document preparation service, from start to finish. Check your situation with a tax specialist, then launch your file.