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

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One of the first things that you can do to benefit your business, says Edmonton accounting firm, is to research the term, and method, and to consider the idea of incorporation for your business. This offers many benefits to you, your family, your employees, and all the subcontractors from within your business. Quite frankly, incorporation of your business offers legitimacy. The optics are much more sound for your company if in fact you go through the very easy quick process of incorporation with your charter professional accountant.

What is meant by the optics are much more sound is that if you’re not incorporated and you have subcontracted, of the company’s might not hire you in that you may in fact leave the work unfinished, or in fact there runs a risk of the Canada revenue agency thinking that you are in fact that other companies employee, and not a subcontractor with your own business.

All of your liabilities will increase with out incorporation, warns Edmonton accounting firm, and you stand at a higher risk factor. You may potentially not have a leg to stand on if in fact you are sued, and can lose all of your valuable possessions, including your car, your house, and your life savings. Consider to all of the valuable employees that work with you and for you. They to all have families to feed and bills to pay, and will in fact lose their jobs.

Without incorporation, you will have to find other, more creative ways to save money. Incorporation is a very easy way to save money in terms of tax, as you and your company will fall under a different type of tax, therefore a lower tax bracket. Without incorporation, you stand to pay 48%, for example in the province of Alberta in Canada. However, in that same province, if you are in incorporated small business, the tax rate is only 11%. That is a savings of 37%, or $37 on every hundred dollars that you make. There are many things that you I’m sure could do with an extra $37 every month or every year. The tax directly correlates to how quickly you are accumulating wealth and how quickly your business wants to grow, and how quickly you would potentially want to retire.

It does not in fact take any time at all to go through the process, from beginning to end, of incorporation of your business. This is a very common misconception for incorporation. In fact, according to Edmonton accounting firm, the whole process, from beginning to end, can take not more than one business day between you and your charter professional accountant. You may not even need to take time out of your day to personally visit your charter professional accountant either, as thisprocess may be able to be done over the phone. The process of incorporation with a doctor or a lawyer can be ever so slightly different in that your charter professional accountant will have to talk to and get approval from their governing bodies.

Your charter professional accountant will be very sympathetic to your business needs, says Edmonton accounting firm, especially if you are in fact a new small business owner. Make sure that one of the first tasks when you have decided that you do in fact wants to own your own business is to retain a quality an experienced charter professional accountant. Work closely with that person, as they will be directly managing all of your finances for your business, and potentially your personal finances as well.

One of the first things that a qualified charter professional accountant will advise you as a small business owner, says Edmonton accounting firm. Is that you are potentially paying far too much tax for your small business. Your charter professional accountant will no doubt suggest incorporation of your business. Immediately, this will save you 30% and percent in tax as you will move to a different bracket instead of individual, you will go to small business tax. That is 37% savings, or $370 on every thousand dollars that your business makes. You may put that towards acquiring efficiencies for your company such as more staff, marketing, or a personal holiday for your family, or saving for quicker retirement.

Another aspect and benefit of incorporation, your accountant will mention is the fact that you will be able to retain your tradename. Your tradename is your fingerprint in your business and your industry. It is what sets you apart from all other competitors. Yes, you can in fact Sibley register your tradename with court registries. However Edmonton accounting firm advises that this does not give you legal right to your name. You may lose it the second that another company decides that they want to use the exact same tradename and they are incorporated. An incorporated company supersedes that of a registered company.

Heaven forbid, too, that you or an employee gets injured on a job that you do. If you are not incorporated, WCB won’t consider supporting you as they like to ensure the quote prime contractor” you will not have access to a proper WCB number. This will leave you in dire straits if you do need time off, or need rehabilitation, etc.

If you are an entrepreneur of a small business, chances are you will already have the software that you need to take on these couple more accounts that you will have for your incorporated company, i.e. GST account, payroll account, federal accounts, provincial tax account, etc. You will not need to buy, air or install any new software to continue with your incorporated company. It is as easy as already using the software that you know and are familiar with.

It is as easy as saving time between you and your charter professional accountant if you are incorporated as well. Simply fill out & 12 postdated checks so that your charter professional accountant may send those in time to the Canada revenue agency for month-end and year-end.