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Outsourced Accounting Services | Are You An Entrepreneur That Wants To Incorporate?

Outsourced accounting services | should entrepreneurs incorporate

Entrepreneurs believe that incorporating their business will be too much work, says outsourced accounting services. They also believe that it will complicate their business, or they donít fully understand all of the benefits they can see through incorporation. Business owners should get fully educated on not only the process of incorporation, but what incorporation can do for them, in order to make the right decision and start seeing the benefits of incorporating right away.

One of the most dramatic changes to a business that can happen to incorporation says outsourced accounting services is lowering a businesses tax rate. Most business owners would jump at the chance to drastically change how much they are paying in taxes, so why more business owners are to take advantage of this is hard to believe. The top personal tax rate in Alberta currently is 48%. That is a massive tax rate, meaning almost half of everything that is brought in is paid out in taxes. Business owners can avoid that massive tax rate by incorporating, and in doing the much smaller small business tax rate. In Alberta, that small business tax rate is only 11%. Business owners should understand that just by incorporating, they can save up to 37% in taxes immediately. There is no better reason to incorporate, and often this is the only reason why many businesses choose to incorporate.

Why saving that amount of taxes is important to businesses asks outsourced accounting services. The reason for that, is that any businesses that would ever want to purchase hard assets in their business, will be able to save money for those purchases a lot quicker if they are paying considerably less taxes. Since purchasing assets is a way businesses can further their business, by becoming more efficient, adding services, replacing old machines, purchasing vehicles, and even buying a building. If business owners are ever interested in doing any of those things, they should incorporate their business to allow them to save that money quicker. The earlier in their business they incorporate, the faster they are able to save the money, freeing up cash in their business as well as being able to save money sooner. One of the reasons that business owners say they have failed in business is because they ran out of cash, and this can directly address that problem. By helping business owners free up cash, they becoming more successful in business.

Another reason why saving money through tax savings is important to business owners, is so that they can save money personally. Many business owners become entrepreneurs says outsourced accounting services in order to help themselves accumulate wealth. A business owner can accumulate far more wealth if they save money in taxes, whether they are funding retirement, vacations or any other reasons, this is a massive help to any business owner who is trying to achieve that goal for themselves.

So by incorporating their business, entrepreneurs can save massive amounts of tax, which can help them by assets in their business as well as accumulate wealth for themselves.

Outsourced accounting services | should entrepreneurs incorporate

There are many reasons why an entrepreneur may choose to not incorporate their business says outsourced accounting services, however these reasons are either invalid, or not true. Since only 11% of business owners seek professional help when they need it, says into at the makers of QuickBooks, it stands to reason that business owners should be seeking help when it comes to finding out the truth but incorporating their business, rather than basing their decision on rumours and hearsay. The benefits of incorporating outweigh the negatives, which are virtually none.

One of the very many benefits of incorporating a business says outsourced accounting services is they will be able to legally protect their trade name. Many business owners make the assumption that by registering their name, they legally own it. This is unfortunately not true. By registering a name, theyíve only put a placeholder on it and they donít actually own it yet. If anyone decided to incorporate using that same tradename, they would be able to. And then have greater legal rights to that name than the first business owner. If business owners are looking to build a brand, and have a great reputation on their name, they will want to protect that brand and their name by incorporating their business with that name. Once they incorporate, they will have the legal rights to their name, protecting it.

Another reason that an entrepreneur may choose to incorporate is to limit their personal liability in their business. Business owners think that their business is liable and not them, however if they are not incorporated this is not true Every time a unincorporated business owner works on a job, or goes on to a job site they run the risk of being sued personally, says outsourced accounting services.

Which means that not only themselves but all of their assets will also be on the line. In order to limit that liability, businesses that incorporate can give the liability to the corporation. This doesnít mean that a business owner cannot get sued, but it does giving their risk is greatly diminished. That is a great and powerful reason why business owners may choose to incorporate.

The third benefit to incorporating is in order to get a WCB number. Any business owners think that they can get one easily without incorporating, and WCB doesnít always issue numbers to business owners who are not incorporated. Any entrepreneurs who do not incorporate from the risk of potentially not being able to get a WCB number which will limit the number of jobs they could take, if it is a requirement of going onto the job site. Some entrepreneurs believe that the company hiring them will be able to extend their WCB number two them, and thatís not always the case. Business owners who make this assumption can often get kicked off the job site, or fired from the job.