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E-Myth – “Why most small businesses don’t work & what to do about it”

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Edmonton Accounting Firm | Incorporate Exchange

You, as a small business owner, says Edmonton accounting firm, wants to accumulate wealth as quickly as possible. That can very easily be done if you have a wonderful team behind you. The team should be supportive and experienced, and be able to help you with aspects of your business that you either are not familiar with, or you do not have time for.

One of those very valuable assets to your business could be a charter professional accountant. Upon retaining a qualified and experienced charter professional accountant, they will advise you of a few things immediately. One of those things, is the fact that you may in fact be put paying entirely too much tax from your business. There are different tax percentages and different tax brackets depending on if you incorporate your company or not, says Edmonton accounting firm. Obviously, as a shrewd small business owner, you want to be in the lower tax bracket. This lower tax bracket comes with incorporation. For example, in the province of Alberta, in Canada, instead of bait the personal tax rate of 48%, you could be paying the small business tax rate of 11%. For your small business, that is in fact a savings of 37%, or $37 on every hundred dollars that your small business makes. You may put that money towards anything that you so desire, including new equipment to make a small business more efficient, something special for your family whom you haven’t seen in a long time because you are building a small business, hiring more employees to make a small business more efficient, etc.

The risk of personal and professional liability increases exponentially as well if you do not incorporate, says Edmonton accounting firm. It is not absolute, however with incorporation the risk is significantly lower that you will in fact have a negative effects if you get sued. As well, you will not lose your house, you will not lose your car, you will not lose your business. You will be saving all of your employees from being out of work and not being able to feed their families pay their mortgage, etc.

Consider to that your tradename for that business is yours and yours alone. It is what sets you apart from the competition within your industry, and is the fingerprint of who you are within that particular industry. If in fact you are not incorporated, you have no legal rate to that tradename. If all you did was register your tradename with the court registries, that leaves your tradename still open and vulnerable to be used and potentially trademarked by some of the else. If however you are incorporated, your tradename is years and years alone to use as you see fit.

Get your charter professional accountant involved in saving a whole much of time by paying all the bills for you at the end of the year. Yes, you will have more business accounts because you are incorporated but those may be easily managed with postdated checks.

If you are not an incorporated company says Edmonton accounting firm, you will need to only worry about a personal tax account. Yes, you could potentially manage that yourself.

Consequently, if you have decided to make the wise decision to incorporate your company you will in fact have more accounts, i.e. GST account, payroll account, federal account, provincial tax account, etc. You will go to potentially one accounts to four or five tax accounts. This often intimidates a lot of small business owners and is one of the reasons why they decide not to incorporate.

However, according to many charter professional accountants and Edmonton accounting firm, these four or five new accounts can simply be managed by retaining a charter professional accountant. You will hopefully have already done this the second that you have decided that you wants to be a small business owner anyways. That charter professional accountant will be the voice of reason and sound if I advice in teaching you the ins and outs of how to start and make a small business profitable. For example, your charter professional accountant will in fact counsel you in regards to those four or five new tax accounts. They will probably advise you to simply write a whole much of postdated checks and pass them off to your accountant. After that you have just saved yourself a whole budget time, and the responsibility is now on your accountant to make sure that all of those postdated checks have been submitted properly and on time so as not to incur any fines or account freezes. Likewise, this only potentially needs to be done once a year, therefore you can forget about it for the rest of the year and concentrate on other parts of your business.

Many of the benefits to incorporating a business include the safety and security that you will have. This includes, having for bid you or one of your employees get hurt on the job, in regards to WCB. If you are incorporated, you may be considered the prime contractor, and you will be issued a WCB number. This will add to legitimacy of your claim and your firm or company. It is very hard, in fact impossible, for WCB to cover you if you are not an incorporated company.

Many new small business owner shy away from a corporation to because they feel as though they may need to reprogram the computers with new difficult to understand programs. This simply isn’t true and you probably will be able to use the same progressive program that you have already used for your small business in the past. There is no new software that needs to be installed simply because you have more tax accounts.

With all of the advice of Edmonton accounting firm and you charter professional accountant, you have not only saved yourself a whole bunch of time throughout the year in order to focus on other parts of your small business, but you have also save money.