Edmonton CPA | How To Start A Business
There are several things that entrepreneurs need to keep in mind when they are starting a business according to Edmonton CPA. Since 50% of all entrepreneurs that open businesses in Canada end up failing within the first five years, therefore if entrepreneurs can get all the help they can get in a starting their first business, they will be able to help themselves beat the odds that many Canadian businesses fail and succeed. When an entrepreneur is starting a business, there are several things that they should know immediately, in order to help them be more inclined to succeed.
The first question that entrepreneurs should know the answer to before starting their first business, is when starting a business who should an entrepreneur first talk to? The best place to start according to Edmonton CPA is starting talking to an accountant. While it may seem like a self-serving answer, it is a great starting point in determining things like the corporate structure that a business owner is going to use, what their business plan is going to look like, determining the financial readiness of that business plan, does it even make sense economically? Many entrepreneurs believe that the first place that they should start when that they are opening up their first business is to hire a lawyer, however any good lawyers are going to immediately point the entrepreneur back towards a good CPA in order to get the corporate structure of their business planned out first.
The second question that entrepreneurs need to ask when they start a business is what happens if they incorporate on their own? This is extremely important according to Edmonton CPA because the articles of incorporation need to have specific aspects to them in order for chartered professional accountants to be able to handle the taxes in an efficient manner. Simply put, a business owner may be forcing themselves to have inefficient tax planning if they incorporate before talking to an accountant. They only options once a business owner has incorporated first, is either scrapping the corporation and starting again meaning will have to pay for the fees again. Or they are going to have to pay higher taxes for the life of their business. Many entrepreneurs believe that they are saving money by incorporating before they visit a lawyer or chartered professional accountant but the truth is they are not.
There are lots of things that entrepreneurs need to keep in mind when they are starting their very first business, and talking to in Edmonton CPA is one of the best places to start. Even if they think they can save money, the best savings of money that any entrepreneur can have in their business is an efficient tax plan. By talking to their chartered professional accountant first, they can ensure that their corporation is being set up properly ahead of time, so that they can avoid paying additional taxes in their first business.
because of the high failure rate of entrepreneurs in Canada, one of the very first things that a business owner should do before they take any steps towards starting a business is talk to Edmonton CPA. This should be the very first step, because chartered professional accountants are going to help entrepreneurs ensure that their business is set up properly in the first place by not doing so, business owners could potentially put themselves in a position of having to pay more money, sitting at their corporation in such a way that forces them to pay more taxes, and even setting their business up to fail from the very beginning. Business owners need to consult chartered professional accountants for the first time before they even make the first steps towards business ownership.
There are several things that entrepreneurs need to ask themselves when starting their business for the first time in order to ensure that they are setting their corporation up successfully, and in such a way to maximize their chances of success in business. The very first question they should ask themselves is why should they talk to a chartered professional accountant before they consult a lawyer? Edmonton CPA says that the reason for this is because the accountants will be able to know the most efficient way to structure in entrepreneurs corporation for the best tax benefits. Even great lawyers will tell entrepreneurs to go talk to a chartered professional accountant first in order to get this tax recipe. A best-case scenario for entrepreneurs starting their first business is to talk to a chartered professional accountant who is going to ask questions such as who is involved, what everyoneís personal circumstances are, their plans to pay their employees are. Once they have all of the pertinent information about their business and the people involved, the accountant is going to create the tax structure, and will communicate that to the entrepreneurs lawyer so that the tax structure of the corporation can be built directly into the articles of incorporation in order for the business owners to have the most efficient tax plan possible.
The next question that entrepreneurs need to ask themselves when they are starting a business for the first time, is there a business structure they can operate without incorporating? While many entrepreneurs believe that the only way to own a business is to have its incorporated, however that does not mean that entrepreneurs have to incorporate their business. Edmonton CPA says that the business that does not need to be incorporated is called a proprietorship. When a business owner owns a proprietorship, that means all of the taxes that they pay in their business will be claimed on their personal tax return. The reason why this might not be beneficial for entrepreneurs to operate is because while the highest tax rate in Alberta is currently at 48%, the small business corporate tax rate is only 11%. In order for maximum tax efficiencies, entrepreneurs should think about incorporating their business. In addition to better tax rates, there is other reasons why an entrepreneur would choose to incorporate it. One of the most significant reasons is because the operating unincorporated business, it limits on entrepreneurs liability. In order to minimize the ability to get sued while running their business, entrepreneurs should incorporate their business.