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Outsourced accounting service | incorporating doesnít have to be hard

Many business owners believe that incorporating their business will be too much work, and not provide enough benefits for them says outsourced accounting service. Therefore they continued to operate as unincorporated businesses or sole proprietorships and miss out on all the benefits of incorporation. Business owners should get educated on what incorporation means for them and their business, so they will be able to make better decisions about whether to incorporate or not. Here are some facts about incorporating that all entrepreneurs should be familiar with when making the decision to incorporate their business or continue to operate as a sole proprietorship in the province of Alberta.

The first fact entrepreneurs should be aware of when deciding if incorporating in Alberta is the right move for them to make, is what is the top personal tax rate is and what the small business tax rate is in Alberta asks outsourced accounting service. The top personal tax rate in Alberta is 48%, and the small business tax rate in Alberta is 11%. This is a very large difference in amount of taxes. Really the impact of this is small business owners with an incorporated company pay significantly less tax than companies that are not incorporated. And what this means if you’re trying to accumulate wealth, is that it is much easier to accumulate wealth when youíre paying lower taxes. And example of this says for accounting service is if a small business owner has $1000 to invest, if theyíre not incorporated they will be spending $480 on taxes. This is significantly different than businesses that are incorporated, if they have $1000 to invest, theyíll only pay $111 in taxes, leaving $890 of there is to invest. Itís easy to see how it is much easier to accumulate wealth when youíre able to pay less taxes on the money you are investing.

This lower tax rate also has large implications for businesses that are trying to buy equipment for their business. Entrepreneurs should see buying equipment not as an expense, but as an asset. Businesses that are not incorporated will have less money they can use on buying assets because of the tax rate. Businesses who incorporate have more money so they can much more easily and quickly by the assets they need to increase their business says outsourced accounting service.

By understanding what incorporating their businesses can do for them, small business owners can make informed decisions whether incorporating their business is the right decision for them or if they should stay as a sole proprietor. Rather than assuming that incorporating is too hard, or doesnít give their business enough benefits. With only 11% of business owners seeking professional help when they needed, ensuring that business owners make informed decisions, is a very important way that they can impact their businesses says outsourced accounting service. Incorporating a business can help businesses accumulate wealth, by equipment, and keep much more of the money from their business within their business.

Outsourced accounting service | incorporating doesnít have to be hard

Intuit, the makers of QuickBooks say that only 11% of business owners will seek professional help says outsourced accounting service. This has huge implications in business, because business owners who are not properly informed about all the facts before making a decision tend to make poor decisions. Entrepreneurs believe that incorporating their business will be too much work. As a result, they continued to operate as sole proprietorships or unincorporated businesses and miss out on the benefits they can be receiving as incorporated businesses.

What are some of the benefits of incorporating outsourced accounting service asks. Many business owners do not realize that if they donít incorporated, their risk of being sued personally increases. Many business owners are not aware of the fact that their personal liability increases by not being incorporated, and every time they set foot on a job site, they run the risk of being sued personally, which means not only the business owner but their personal effects are also on the line such as their house, and car. This is a huge risk to business owners, and one that can be significantly lowered by incorporating their business. Thereís no reason why a business owner would not want to significantly lower their risk of being sued.

Another great benefit of a business being incorporated is some businesses will not hire sole proprietors if they are not incorporated. There may be a couple reasons for this says outsourced accounting service, for some businesses it is a legitimacy concern. A business owner who is not incorporated runs the risk of not appearing legitimate do some businesses. When hiring independent contractors, some businesses may only look at businesses that have been incorporated. Another reason a business that is not incorporated may not be hired, is that it increases the chance that the company that is looking to hiring you may legally have to consider you there employee, which increases their risk. So some companies opt not to hire sole proprietors as contractors if they are not incorporated.

The third benefit to incorporating is to have legal rights over their businesses tradename. Many entrepreneurs believe that if they register their tradename at the Registryís office, that this gives them the rights to it. Unfortunately, says outsourced accounting service if somebody else incorporates using the businessís tradename, they have a greater legal right to your name then the owners who only registered it do. Entrepreneurs should ensure they protect their name by incorporating their business.

These are three extremely compelling reasons why business owners should consider incorporating their business instead of operating as sole proprietors says with accounting service. Business owners should learn all of the facts about incorporating, and make an appointment with their accountant or bookkeeper to decide what the right decision is for themselves and their business. They may be surprised to realize that incorporating is absolutely the best option for them.