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

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Outsourced Accounting Services | Hoping To Incorporate?

Outsourced accounting service | one day to incorporate

Entrepreneurs believe that incorporating will be too much work and complicated, therefore they continue to operate as unincorporated businesses or sole proprietorshipís and thus miss out on all of the benefits of incorporation outsourced accounting services. As Confucius says life is really simple, but we insist on making it complicated. The same goes for incorporating. It really is simple but business owners tend to make it complicated. The facts are it is not only simple to incorporated, and also is a very quick process. Business owners can usually be incorporated within a single day.

With how easy it is to incorporate within a single day, there is no reason why business owners shouldnít make efforts to immediately benefit from incorporating their business. There are several things to gain and nothing to lose. So the benefits of incorporating include eliminating personal liability, avoiding not being hired by companies, securing WCB coverage for themselves as well as having the legal right to their trade name.

Having a corporation to protect them, business owners are at risk for being sued. Every time they go on a job site they run the risk of being liable for anything that may happen on the job site, which means to a small business owner not only them personally, but there assets are also at risk, including their house and car. Whether they have a family or not, business owners should protect themselves against this risk. By incorporating, the corporation assumes the risk of corporation, leaving the business owner protected says outsourced accounting service.

Some companies may also opt to not hire a small business who is not incorporated because by not being incorporated, the business owner may be considered that the companies employee. This increases that companies risk, therefore they may decide to not hire any company that are sole proprietorships says outsourced accounting service. For small business owners be able to accept all jobs is very important, and by incorporating, they are allowing themselves to be hired by any company. This is huge for small businesses who are struggling to find work.

Another benefit to incorporating is having the legal right to their tradename says outsourced accounting service. Business owners are under the assumption that if they have registered their trade name registerís office, that they have the legal right. Unfortunately this is not true if the business after them and incorporates themselves using someone elseís tradename. even if one business owner has registered it, the corporation will have larger legal rights to that name then a company that has just registered it. Therefore businesses who have spent time building a brand, brand recognition and has unknown name will want to protect themselves by incorporating to limit anyone else using that name.

These are some very important reasons why unincorporated businesses or sole proprietorships will want to incorporate their business, by reducing personal liability on a job site, by being able to land all of the jobs that come their way, and by protecting themselves and their name, business owners are highly advised and encouraged to incorporate as quickly as possible.

Outsourced accounting service | one day to incorporate

Intuit, the makers of QuickBooks say that only 11% of all business owners will seek professional help when they need it says outsourced accounting service. Thatís too many business owners operating without proper information. One of those things that business owners do not have the right information on is incorporating their business. They first opened their business, and no problems running their sole proprietorship, and donít realize that incorporating their business can help them. In fact without quick and easy it is to incorporated business – often it can take under one day to finalize, business owners can start seeing the benefits of incorporating immediately.

One of the largest benefits of incorporating is the tax savings says outsourced accounting service. The top personal tax rate in Alberta currently is a 48%, meanwhile the small business tax rate in Alberta is 11%. This is a 37% savings in taxes. All business owners should want to immediately take advantage of this tax savings. All thatís required to get this tax savings is to incorporate. One of the benefits of stating taxes, is the ability of the business owner to be able to accumulate wealth through investing and retirement savings.

Since they will have more cash at their disposal, they will be able to save up quicker and easier. In addition to being able to save money, this will also help business owners who are buying equipment for their business. Business owners should see purchasing equipment as acquiring assets. If the business is incorporated, they will have lower taxes and therefore be better able to save up the money to buy those assets. Any business who may need to buy equipment such as machines to produce their product, vehicles, or replace any existing equipment will want to incorporate so they can start saving money immediately.

In addition to saving money, accumulating wealth and buying equipment, there are a number of reasons why incorporating is in the best interest of a business says outsourced accounting service. One of the benefits of incorporating is being able to get WCB coverage. Most business owners donít realize that they may not be able to get WCB coverage. The reason for this is WCB only gives numbers to prime contractors. If a business does not have a GST number, WCB may decide to not give a number to that business. This can be devastating to business because without a WCB number they may not be able to take on certain jobs, and may get kicked off of others. In order to be able to accept all of the jobs that come their way, business owners should become incorporated.

Business owners also may not realize that by not being incorporated, some companies will not hire them as a contractor says outsourced accounting service. The reason for that, in addition to not having a WCB number is sole proprietorships often must be considered the companies employee which increases their risk. Businesses may choose to eliminate that risk by insisting all of the contractors that they hire have been incorporated. Also not being incorporated may cause some businesses to question the legitimacy of that business. In order to land all the jobs that come their way as well as be seen as a viable business, business owners will want to incorporate.