One way to become eligible to collect employment insurance benefits is to set up a corporation and become its employee. According to the EI Act, in order to qualify as an EI insurable employee of the corporation, you must not control more than 40% of its voting shares. And you must maintain an arm’s length relationship with any shareholder who controls the voting shares of the corporation, which rules out spouses and other family members as controlling shareholders.
Basically, incorporation will enable you to participate in the EI program if you hand over control of your business to someone outside your family and your employment conditions are equivalent to those of any other employee in a similar position.
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