Outsourced Accounting Services | Looking at All The Benefits of Incorporating?

Outsourced accounting services | the many benefits of incorporating

Many entrepreneurs are unaware of all the various benefits that incorporating can bring to their business says outsourced accounting services. They may be aware that they can save some taxes, but they donít know how much and are completely aware of all of the other benefits of incorporating. This article will discuss all the ways that a business can positively benefit from incorporating. Since only 11% of business owners seek professional help when they need it says Intuit, the makers of QuickBooks. By helping business owners understand outs of incorporating can help them make the right decision.

When a business owners are aware that is a tax savings when it comes to incorporating the business, but they are uncertain of how much their business can stand to save. To understand how much a business can save says outsourced accounting services, you need to first understand what is the top personal tax rate and the small business tax in Alberta. Even though everyone pays taxes, people are very surprised to learn that the top personal tax rate in Alberta is 48%. Thatís almost half of the income earned that goes towards taxes small business taxes are 11%, which means simply by incorporating, business owners can save up to 37%. Business owners understand that so much they can stand save, usually becomes a very easy decision to incorporate their business.

If that significance tax savings isnít a reason for businesses to incorporate their business says outsourced accounting services, perhaps these next two seasons will be. Incorporating a business lowers personal liability, and incorporating business allows a business to get a WCB number. Many business owners believe that they will be able to get a WCB number and needed, however this is not necessarily true because WCB does not always issue numbers to businesses that donít have a GST number. If he is that is defining factor for who gets a WCB number. By putting, businesses get it GST number and can be assured that they will get a WCB number when they need one.

Also businesses be surprised to learn that by not incorporating, they are at risk personally for being sued. Many business owners think that their business is the one at risk, but that is only true if they incorporate. Which means if a business owner is not incorporated, every time they go on a job site they run the risk of being sued personally, which not only puts them on the line, but their house as well. To avoid potentially losing the house, business owners should incorporate the business in order to allow the Corporation to assume the liability set of them.

The reason why business owners may choose to not incorporate, is that they are under the misconception that it is complicated, or takes a long time says outsourced accounting services in fact incorporating a business only takes one business day. It is not a long or call the procedure. Make an appointment with the account, and bring your tradename. Usually it can be done within one business day. This process might be slightly longer for professionals like doctors who will acquire a stamp of approval from their governing body. This can take a couple weeks. But for the average contractor or small business this is a much quicker and simpler process.

Outsourced accounting services | the many benefits of incorporating

Business doesnít need to be complicated, but business and often make assumptions that it is more complicated than it is says outsourced accounting services. As the Confucius quote says life is really simple, but we insist on making it complicated. By becoming educated, business owners can understand what they incorporated, and why they might make that choice. By not incorporating, of businesses arenít taking advantage of all of the benefits they may be entitled to as a corporation.

Many business owners believe that by incorporating, will force them to have complicated accounting or bookkeeping practices, and some even believes that they will have to purchase brand-new accounting software and learn how to use it. This view of change and to complicate their business, business owners from incorporating says outsourced accounting services. And in fact nothing is further from the truth, businesses will not have to change any of their bookkeeping or accounting practices when they incorporate. Whatever they were doing prior to incorporating is what they should continue to do.

Another reason businesses may choose to not incorporate is because they think taxes become considerably more complicated once incorporated. While itís true, says outsourced accounting services that a business owner who incorporates will go from one personal tax account to four or five including a federal tax account, a provincial tax account, and a GST account, this doesnít necessarily it is more complicated. A business owner can set up a schedule with their accountant for all of these payments and to all the various accounts through postdated checks once a year. Once this is set up once, business can continue as it previously had.

The third reason that businesses often choose not to incorporate is because they believe they are year ends are more difficult, time-consuming, and complicated to complete. Again outsourced accounting services this is not true, all that is required is for a business to get a corporate account and corporate credit card, which is something they really should have had in the first place. They submit monthly statements once a year to their accountant who then takes care of their youíre at. Not only can it be this simple, by doing it this way, businesses will get some degree of audit protection. What business does not want to simply grant that includes audit protection?

These are the three most common reasons why entrepreneurs have chosen not to incorporate the past. Once a business owner understands how incorporation actually works, they can make the choice to proceed with the incorporation because itís not going to change their business, but their business stands to benefit greatly.