Edmonton Accounting Firm | Incorporate or Not
There are many factors, and organizations that can hinder small business if in fact they do not make the smart decision to incorporate themselves, says Edmonton accounting firm. These organizations and businesses include the Worker’s Compensation board, the Canada revenue agency, and other smaller businesses that you may or may not have come in contact with and have been subcontracted by or have worked closely with.
Ideally there are no real down points to incorporating your small business. Everyone likes to save money, especially if you are a small business. By incorporating, this will allow you to save more than 30% on tax year to year. As well, your charter professional accountant whom you no doubt have retained because you own a small business and hopefully are not doing everything all by yourself, will tell you that incorporation is a wonderful idea in that you will become a legitimate business in the eyes of contractors, subcontractors, employees, and other employers.
Obviously, says Edmonton accounting firm, at the idea in working for everybody, small business owner or not is to attain wealth and hopefully eventually time and financial freedom. I incorporating your small business, you will easily be able to retain some wealth in that you will not be paying near as much tax as you would if you were not incorporated. As well, in your year and financials and gathering everything up in order to submit it to the Canada revenue agency, you will be able to also save time to spend with your family or do it you like to do because you have passed off all of that extra paperwork and such to your charter professional accountant. Likewise, your charter professional accountant will have advised you to simply postdate 12 checks and your accountant can pay the Canada revenue agency, on your behalf based on projections that have been reasonably forecast because of what has happened the year previous. You and your accountant can agree on what amount of money you’re going to take of the business every year as well, your charter professional accountant will then give you a schedule and the dates with which to make out the posted checks. You give the postdated checks to your charter confessional accountant, your accountant will give it to the Canada revenue agency I had of any deadlines so as not to accrue any fines, and you have just saved a whole bunch of time, particularly them at the end of the year.
Heaven forbid yourself or one of your employees get injured as well while on the job working for you if you are incorporated, is far easier to get WCB number and to go through the process if you are incorporated. Both you and your employee will have peace of mind knowing that they are well taken care of because of their injury well into the future.
It is just far easier to accumulate wealth when you are paying less tax, and have more free time.
Particularly because you are a small business owner, says Edmonton accounting firm, you are looking forward to time and financial freedom. It is far harder to attain financial freedom in a timely manner if you are paying 40% tax versus 11% tax. This discrepancy happens if you are not incorporated as a company versus if you are incorporated as company. The time freedom comes as well as incorporation from beginning to end takes approximately one business day. You may as well be able to do it by phone with your charter professional accountant. Ergo you don’t need to meet with your charter professional accountant make a special trip. If you are however a lawyer Dr. the accountant will have to seek permission from your governing body which may take up to two weeks.
You are a liability to yourself, your family, and your coworkers and employees if in fact you do not research and incorporate, says Edmonton accounting firm. Not only will you be saving a lot of money in taxes, but you will also be well taken care of in case something happens in terms of an on-the-job injury. If in fact you are incorporated and have a WCB number, you will be far better taking care of that if you don’t. The process will be that much quicker that much easier.
As well, despite the fact that you will now with incorporation have for maybe five accounts, which includes a payroll account, GST account, and other such accounts, it is a very easy process to maintain those accounts when you have retained a charter professional accountant. Make sure that you have passed all that information to him so that they may be able to take care of everything in terms of your month and year ends. And submitting everything to the Canada revenue agency before the deadlines. That way, says Edmonton accounting firm, you will be able to have more financial and time freedom to do what you like to do with your family, or work harder and in different areas the business so that it grows quicker.
As well, you’ll better be able to get you equip it for your business as you will have saved a lot of money in tax and can put forth to the business so you can work on efficiency issues within your business.
Don’t forget, too, says Edmonton accounting firm, about your tradename. You will be able to retain your tradename if you are incorporated in case someone has the same tradename as you and would like to use it. As it goes, if you are just registered with court registries, you do not have sole possession of your tradename. However, if you are incorporated that tradename is distinctly and originally years. You can revisit and own your tradename year after year.
There are many reasons to incorporate many of which are financial, health and safety, and in brand recognition and growth your business. There are all positive reasons to incorporate.