Edmonton Accountant | Incorporation Is Essential To Win Now
Edmonton accountant warns against many pitfalls and circumstances that can name negatively impact you and your small business if in fact you do not incorporate your business.
For example, because of the different tax percentages with incorporation versus non-incorporation, you will have that much less money to spend in your business to potentially by no quit meant, hire more employees, or just plain pure retirement or something else of personal nature. Between the 40% tax for non-incorporated companies, i.e. personal tax rate, versus the small business tax rate of 11%, on a $1000 investment you will be potentially saving approximately $300 more if you are incorporated versus if you are not. That is a lot more money to go into your business on a regular basis.
As well, Edmonton accountant suggests your business can potentially be your professional identity, along with your pet professional identity is usually a tradename. If you decide the register your tradename with court registries, that is legal. However, the second that somebody else comes along and takes your tradename and incorporates before you, you have no legal ramifications to keep that tradename and you must really push it. Again, this could potentially lose your professional identity.
There are big ramifications as well says Edmonton accountant, in terms of what WCB coverage or lack thereof they will give you if you are incorporated versus if you are not. For instance, you will not get coverage if you are not incorporated as they like to ensure the “prime contractor” on the job. You will not be covered by WCB because you do not have a WCB number.
It is a simple matter of the fact that you will not be spending any extra money with incorporation. On the contrary you will be saving a much money. This is true in that example is you do not have to buy any new software just because you may have a few more accounts that you need to deal with. The chances are that the software that you will need for incorporation is already the software that you possess anyway, if you have employees working for you. Your new accounts will include a federal or provincial tax account a payroll account and a GST account. Though these may seem like a lot of account suit take care of they can be reasonably managed with your charter professional accountant. You do is you write postdated checks and pass them to your account so that he may make the payments in a timely fashion so as not to receive any fines Canada revenue agency or incur any penalties. This can be done only once a year, by filling out signing 12 posted checks. Once completed signing them, pass them to your charter professional accountant and he can hand the checks over to the government as the deadlines become due so that is one less thing that you need to worry about as you are attempting to grow your own business.
Incorporation can be as easy as a simple one day visit to your accountant, says Edmonton accountant. Worst-case scenario, you are a doctor or a lawyer and your accountant has to go through your industries governing body and you will have to wait for your incorporation for two weeks.
Consider for Confucius is quote when he says “life is really simple but we insist on making a complicated.” This can very well be true of most aspects within starting and owning a new business. One of the things that deter people from incorporating the new business is because they think that they will not be able to manage all of these new accounts that they receive i.e. a GST account, payroll account, federal provincial accounts etc. But if small businesses simply had a conversation and a little bit of foresight and organization they may be able to figure out a wonderful payment schedule with your charter professional accountant and he will be able to do all the legwork for you. It could be as simple as a once a year thing.
The benefits of incorporating your business, counsels Edmonton accountant far outweigh the negative consequences. For example, if Sony decides that they want to sue your incorporated company, you are in fact covered because you are incorporated. You fall under that protected incorporated umbrella
On the contrary, if you are sued for a job and you are not incorporated, the ramifications to your business and your personal life could be life-changing and detrimental. You may lose your car, your business forever, your house, or even your life savings. You retain a sense of protection if in fact you are in incorporate company. This
This is also true to if you have to deal with WCB, heaven forbid. If summit is injured on the job, either yourself or an employee, you won’t get the coverage as they will not consider you the prime contractor. You will not be covered because you simply do not have a WCB number.
Edmonton accountant says you may potentially lose the right to your tradename to, if you are not incorporated. Yes, he you may have registered your tradename with the court registries. However if you’re are not incorporated but a business comes along, is incorporated, and wants to use that name they have precedents over you, the ending incorporated company.
Don’t worry either about having to buy and install any new software just because you have a few more accounts. Chances are you will have already installed this software and have been using it already anyways.
An easy way to relieve yourself of having to deal with Canada revenue agency’s deadlines for month and year end is simply to write postdated checks, hand them to your charter professional accountant, and have them deal with all of the deadlines for tax, GST, etc. This will relieve you from having to remember deadlines and will give you more time to potentially spend with your family with all the money that you saved from the tax incorporation.