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I've been working at a place for 6 months and now they want me to switch to a contract style position as well as getting me another contract to do a mobile application.

At first the deal seems good but if I would end up forfeit my Employment Insurance because I'd be getting income.

I was thinking could I start a corporation and have the corporation receive the income while I'm on unemployment? I'd actively be looking for a job as well and could finish the app on the weekend. Is this legal?

If not I would probably refuse the offer at current price because alternatively I could receive 55% of my income while looking for a better job as well as working on my own mobile app, which I could work on for several months and then put it on the market after I get another job or finish with the employment benefits.

EDIT: I'm in Ontario, Canada.

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You probably want to edit you question so we know where you live (what laws etc applies) – Jontas Jul 5 '12 at 18:31
@Jontas good point, I'm in Ontario Canada – PhilipK Jul 5 '12 at 18:33

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