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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 | Looking To Start Saving With Taxes?

Outsourced accounting services | saving taxes through incorporating

One of the biggest reasons that business owners decide not to incorporate their business, is that they will think it will be too much work says outsourced accounting services. Not only is this not true, but this untruth causes many business owners to decide not to incorporate, thereby missing out on the huge benefits that incorporation can bring their business. By teaching business owners not only why they should incorporate, but also dispelling myths about incorporating can help entrepreneurs make the right decision for their business. The sooner business incorporates, the sooner they can start reaping the benefits of incorporating in their business.

One of the biggest reasons that a business should incorporate their business says outsourced accounting services is in order to save taxes. Many business owners know that they may save taxes by incorporating their business, but they donít fully understand how much taxes they can save, or what that tax savings can mean for themselves or their business. By understanding exactly how much tax they stand to save, and how that can change their life and their business, business owners can choose to incorporate the business a lot sooner. Since only 11% of business owners seek professional help, says Intuit the makers of QuickBooks, many business owners continue to make these assumptions about incorporation which is a detriment.

To understand how much tax savings business owner can achieve by incorporating their business, they must first know what the top personal tax rate in Alberta is, which is a 48%. That is absolutely appalling tax rate, says outsourced accounting services. That means almost half of everything that business owner brings in goes back out to the government. Most people with that tax rate would want to change that immediately, especially if their business owners. The small business tax rate in Alberta is 11%. Compare that 11% to 48%, that is a huge difference. This owners can start saving up to 37% in their business immediately once they incorporate. If business owners were aware of the greatness of this tax savings, more of them would go through the process.

So what does this tax savings mean for business owners asks outsourced accounting services. Not only does that mean that if an entrepreneur is trying to invest their money so that they can accumulate wealth for their future, they will be better able to do so if they incorporate. They will be paying less in taxes, meaning they have more money to invest. Rather than paying taxes, they can put it into their savings. Any business owner who is looking to accumulate wealth, retire, take vacations, should access these benefits immediately.

Another reason saving that amount in taxes is beneficial to business owners, is if they are ever going to be purchasing assets for their company, whether itís new equipment, vehicles or a building. A business owner will be able to save money twice as fast for those purchases if they incorporate. They can save the amount that they are paying taxes, and put it into savings account for asset purchases to benefit their business.

Outsourced accounting services | saving taxes through incorporating

Business owners often believe that there is not enough benefits to incorporating their business, and that incorporating will be too much work for them says outsourced accounting services. Therefore they do not incorporate their business and miss out on all the benefits they could be enjoying in their business.

One of the biggest reasons a business owner should incorporate their business, is to see the tax savings. The top personal tax rate in Alberta is 48% versus 11% for the small business tax rate. That is a huge difference between the two says outsourced accounting services. Business owners can start saving that money immediately, as soon as they incorporate their business. Any business owner understands how hard it is to save money, but how important that is as well. By saving 37% in their business, business owners can affect great change within their business. Since 50% of all business owners go out of business within five years, and 29% of those businesses say that running out of cash was the contributing factor to their failure, businesses can increase their chance of success by incorporating and enjoying significant savings on their tax rate.

Many business owners believe that incorporating will mean that paying their taxes will be increasingly difficult and complicated says outsourced accounting services, but nothing is further from the truth, even though they will be moving from one personal tax account to multiple tax accounts, through having a provincial tax account as well as a federal tax account and a GST tax account, their accountant will be able to schedule all of those payments and to all the various accounts through postdated checks once a year. All business owners need to do is provide us postdated checks to their accountant once or and continue operating their business like nothing has changed. Therefore business owners can enjoy great tax savings, without complicating their business.

The reasons that saving taxes is great for business is so that business owners can accumulate wealth. One of the reasons entrepreneurs want to be in business for themselves, is to help them change the future, by being able to save more money. This is possible as a business owner if the business incorporates, and uses the lower tax rate to help them put money into accumulating their wealth. Another thing that business owners can do with a much lower tax rate, is saving money to buy hard assets within their business.

If a business will ever need to purchase equipment, vehicles, or building, a lower tax rate can be huge, as it will allow them to save even more money because theyíre not paying taxes. Outsourced accounting services says that helping business owners free up the money in their business to make purchases as well as use as operating capital, can help business owners succeed where other business owners have not.