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Outsourced accounting service | incorporating small businesses
Life is really simple, but we insist on making it complicated to says the quote from Confucius – outsourced accounting services the same is true for businesses that are thinking about incorporating. They tend to think that incorporating is complicated, when the fact is it is very simple and very beneficial to businesses. Many small businesses donít think that there are large enough to be able to be incorporated, but any business is able to be incorporated. It is a quick and simple process, and any business who decides to incorporate can see many benefits.
One of the most important reasons to incorporate a business rather than stay as this will proprietorship is tax savings says outsourced accounting service. The tax savings for a small business can be very drastic. The top personal tax rate in Alberta is 40%, while small business taxes are at 11%. Business owners often go into business for themselves in order to change their future, and it doesnít make sense for them to not take advantage of one of the most dramatic reasons why businesses incorporate. Being able to save up to 37% taxes can be life-changing for most small businesses. If most sole proprietorships new how much they could save an taxes alone, they would probably not hesitate in incorporating their business immediately.
Saving so much money in taxes means that business owners who are trying to save for retirement, accumulate wealth, or buy equipment for their business can see immediate benefits from a corporation. But in addition to saving money, there are many other reasons why a business would choose to incorporate says outsourced accounting service. One of those reasons is eliminating their personal liability. Business owners who are not incorporated are at risk personally for being sued. This means that not only are business owners themselves at risk, but some other personal effects such as their house and car. Most business owners wouldnít want to put their family at risk that way, and incorporating their business is the quickest way they can reduce their personal liability. The Corporation shoulders the liability, leaving the business owner and family safe.
Business owners may also not understand that by not incorporating, they could be putting getting WCB coverage at risk. The reason for that says outsourced accounting service is WCB usually only gives numbers to prime contractors. If a business that have a GST number, WCB will not issue a WCB number. This can be devastating to a business that gets hard to go on job sites. They may get kicked off the job site for not having coverage, or they may get fired from the job completely for not having WCB coverage. A simple and fast way of ensuring that they will be able to get coverage when they need it, is to incorporate their business.
Business owners should understand that not only is incorporating the business simple, it also can help them save taxes, save money, by assets for their company, as well as get WCB coverage.
Outsourced accounting service | incorporating small businesses
Business owners believe that incorporating their business will be too much hassle, so they continue to operate as a sole proprietor and miss out on all of the business benefits of incorporation. Business owners also believe that their business is too small for incorporation, thinking that this is the step that only very large companies need to take. The fact is, any business can incorporate, and any business can benefit, and most businesses should benefit from incorporation. It is a simple and easy process and can mean such a huge once to businesses immediately
Because small businesses believe that incorporating is something that only large businesses do, they are under the misconception that incorporating will force them to have complicated year ends, or complicated bookkeeping. Outsourced accounting service says this is unfounded and untrue. small businesses can keep the exact same bookkeeping and accounting procedures that they ever had, no need to use any accounting software if they havenít in the past. Even though incorporating a business will require that business to have more tax accounts, it doesnít have to be complicated. Businesses that incorporate will move from one personal tax account to a federal and provincial tax account, as well as a GST account. A business owners accountant will be able to easily schedule payments a year in advance with the use of postdated checks. A business owner can continue operating their business the exact same way they always have, as though nothing has changed, because nothing really has.
When filing year end for businesses that are incorporated, it can be very easy assures outsourced accounting service. A business owner will get a corporate bank account, a corporate credit card, and submit their monthly statements once or to their accountant who takes care of filing the year end. In addition to being very simple and easy, this method also affords the business owner audit protection as well.
Some of the reasons why businesses would choose to incorporate would be to save taxes. Many entrepreneurs say the reason why they went into business is because they wanted to take control of their future says outsourced accounting service. They want to be in control of their destiny, by being able to make more money, and be in control of their retirement. For these reasons, business owners should definitely take advantage of the tax benefits of incorporating. The top personal tax rate in Alberta is 48%, while the small business tax rate is only 11%. Business owners can start saving up to 37% in taxes immediately as soon as they incorporate.
With how easy it is to incorporate, and with how much a business stands to gain, there is no reason why a business owner shouldnít incorporate their business immediately says outsourced accounting service. By continuing to operate as an unincorporated business or sole proprietorship, entrepreneurs are missing out on all of the benefits they could have.
