As a self-employed Canadian I recently interviewed with a startup based in the U.S and received an offer. I'd be invoicing them, and they'd be paying a fixed mo

As a self-employed Canadian I recently interviewed with a startup based in the U.S and received an offer. I'd be invoicing them, and they'd be paying a fixed monthly rate into my corporate account. They rescinded their offer, citing what I think is just a scapegoat, which was they they spike to their lawyer and concluded that the nature of the relationship was too close to employment, and would leave them liable under Canadian employment law. I say this was probably a scapegoat, because they were inflexible on arranging any other form of agreement, and it came suspiciously after I asked about how to bill for time off. Have you ever encountered anything like this, and is it really a concern I should consider in the future? They also didn't have an entity in Canada, and it would have purely been a contractual arrangement at the outset.