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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 | Searching For Sole Proprietors?

Outsourced accounting services | should sole proprietors incorporate

Business owners are often unaware of what it takes to incorporate their business says outsourced accounting services. They are operating under several misconceptions including their business is not large enough to incorporate. They operate as a sole proprietor, unaware that corporation is available to them, and they miss out on all of the great benefits of incorporation. Intuit, the makers of QuickBooks say that only 11% of business owners seek professional help, which is why many business owners are under several misconceptions when it comes to incorporating. It is not complicated, no matter how many entrepreneurs assume it is.

Solopreneurs are operating their business in a silo, and donít know all of the benefits of incorporating. In addition to the massive tax savings that they can enjoy immediately, small business owners also should know some of the benefits other than tax savings that they can enjoy. His can help them run their business efficiently, land more jobs, and reduce their liability. All these things are important to most small businesses says outsourced accounting services.

The biggest one for small business owners is decreasing their personal liability in business. Many small business owners believe that they either donít have any liability in their business as an owner because their business takes on that liability, or they just accept that as a risk of being the business owner. Unfortunately this is something that is perfectly avoidable says outsourced accounting services. By incorporating a business, business owners can put the liability into the corporation rather than on their shoulders. Business owners who carry the liability for their business, are not only putting themselves at risk, but there also putting all of their assets at risk. Including their house, vehicle etc. In order for business owners to avoid carrying that liability for themselves, incorporating can greatly limit liability. This doesnít mean that business owners cannot get personally sued, it just means that the risk of being sued is greatly diminished. That can bring great peace of mind to entrepreneurs.

The next benefit to entrepreneurs other than tax savings is being able to protect their tradename. Most small business owners believe that by registering their tradename is enough to protect it says top accounting services and unfortunately this is not true. A small business does not own their name if they register it. By registering it, it is only considered a placeholder. Anyone can come after and incorporate using that tradename, and the legal rights will land with the incorporated business. If a business owner is putting time and effort into brand recognition as well as their building a reputation based on that name, they should incorporate their business and protect their name. Their name represents their livelihood, and by incorporating, they will protect that livelihood.

These are just two of the great ways that small business owners can benefit through incorporating their business. As opposed to what they may think says outsourced accounting services it is not a hard or long process, and the benefits are too numerous to ignore.

Outsourced accounting services | should sole proprietors incorporate

Life is really simple, but we insist on making it complicated the quote from Confucius reminds us says outsourced accounting services. Often sole proprietors believe that it is a complicated process to incorporate, or that it will require a lot of work or a lot of that business owners time, and they are unable to devote time to it. Therefore they continue to operate their business as a sole proprietor or just an unincorporated business and miss out on the significant benefits that incorporating the business can bring them.

Being a sole proprietor can be difficult, and incorporating a business can help business owner in so many ways says outsourced accounting services. One of those benefits of incorporating is being able to land significantly more jobs. The reason for this is sometimes businesses will not hire sole proprietors that are not incorporated to work for them. The reason for that is a liability for that business. They may have to consider any one who works on their job site who is not incorporated to be there employee. That increases their risk and they donít want the hassle. Therefore they have a blank rule that says they will only hire businesses to work for them who are already incorporated. An example of this would be Suncor requiring a welder to come on site for a job. A business owner who is not incorporated may not get hired for the job, or even get kicked off the job site once they get there. That wastes time for the business and greatly limits how much business that owner can take. By becoming an incorporated business, they can take on many more jobs.

Another benefit of incorporating says outsourced accounting services is being able to obtain their own WCB coverage. Many sole proprietors believe that they will be able to obtain WCB coverage, and this isnít always the case. WCB doesnít always issue members to businesses that are not so proprietors. One of the reasons for this is if every individual person needed to obtain their own WCB number, that would bog down the system and take far too long. Therefore WCB has a rule place that says they only issues numbers to incorporated businesses or people who are the prime contractor for their business. By not having that incorporation in place, WCB may see you as just an employee and deny you the number. Another misconception that business owners have says outsourced accounting services is that they will be able to use the WCB coverage of the company theyíve been hired to work for, and this is also not necessarily true. Business owners may not land a job because they donít have WCB, or they may get kicked off the job site once getting their, which wastes their time.

In order for businesses to land all of the jobs that come their way, becoming incorporated as an efficient and effective way of ensuring that they can accept any job, which will help them grow their business.