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Outsourced accounting services | incorporation facts
Business owners often hold the belief that incorporating their business is a lot of work, therefore they continue to operate as unincorporated businesses or sole proprietorshipís says outsourced accounting services which causes them to miss out on the great benefits incorporating can give their business. There are many misconceptions business owners have about incorporating, this article will set all of those myths straight, providing all of the facts about incorporating so that business owners can make an informed decision for their business.
One of the biggest myths that many business owners believe when it comes to incorporating their business, is that it takes a long time. Outsourced accounting services says the actual amount of time it takes to incorporated business is one day. Businesses should make an appointment with their accountant, and often the process can be completed within 24 hours, if not the same business day. This timeline might be slightly longer for professionals such as lawyers or doctors because there needs to be a stamp of approval from their governing bodies, which lengthens the time by a little bit. Still, the process is very simple and very fast. There is no reason why a business owner should avoid incorporating because they think it is time-consuming or complicated. As Confucius said life is simple, we make it difficult. The same goes for business owners and incorporating the business. It really is a simple process, they just think itís harder.
Many business owners decide not to incorporate because they are under the assumption that it is way to complicate paying taxes. Outsourced accounting services while itís true the number of tax counts they will have increases, this doesnít mean that paying taxes have to be. Business will go from one personal tax account to more, including but not limited to a GST account, a federal and provincial tax account. Your account will be able to schedule all of these payments into the various accounts through posted checks you give them once a year. Once itís scheduled a business owner doesnít have to think about it and they can proceed in running their business as they always have. This should not be a deterrent to incorporating.
Another misconception that business owners often have about incorporating their business, is that it complicates their year end. Again, outsourced accounting services says that this is not true. The year-end filings can actually be done as easy as handing and 12 bank statements. Once a business owner incorporates they should have a corporate business account, corporate credit card, all they have to do is keep their monthly statements and submit them once or to their accountant who will then takes care of that businesses year-end. In addition to being very easy, filing the year-end this way will also give the business owner some degree of audit protection. any businesses who have been through an audit, or have feared an audit will appreciate the protection.
These are just some of the reasons why business owners should choose to incorporate rather than making assumptions and missing out on the benefits.
Outsourced accounting services | incorporation facts
Outsourced accounting services says that one of the reasons entrepreneurs do not incorporate their business is because they think it is going to be too much work, or will complicate their business. One of the reasons why business owners went to business for themselves was to do things their way, and be in control of how they run their business. That fear of change can often keep businesses from actually proceed with incorporating their business, which keeps them from benefiting in all the various ways that incorporation can bring them.
One of the big misconceptions that business owners have when it comes to incorporating, is them believing that they will either need to change their accounting software, or be forced to get accounting software. Many businesses donít need to have or use accounting software, but they have the belief that they need to get it once they incorporates. Outsourced accounting services says nothing could be further from the truth, and in fact nothing needs to change in their business if they incorporate. The day before they incorporate the day after the incorporate nothing needs to change. A business owner can continue operating their business in the way they always have. This fear should not keep businesses from proceeding with incorporating.
Business owners believe that they donít need to incorporate in order to protect their trade name says outsourced accounting services. This actually is not true. Just by registering a trade name does not give the company the overwhelming rights to it. Anyone can incorporate and choose that registered trade name and then obtain the greater legal right to that name than the first business. This is really scary, especially for businesses who have spent time and money building up that brand, and on name recognition. Itís hard to believe that anyone can come in and take that away, but itís true. Businesses who want to protect their name should incorporate their business as quickly as possible.
Business owners often are under the assumption that they will be able to accept any job that comes their way, regardless of incorporation or not. Outsourced accounting services says that this is unfortunately not true. For some companies they donít want to hire business who is not incorporated because the business doesnít look legitimate, that is they look like itís a hobby business or their a bit of a fly-by-night organization, even if thatís not true in the least, many businesses who donít incorporate are extremely legitimate, but the perception is different.
Also some companies will choose not to hire unincorporated businesses to work on their job site, to reduce their own liability. the reason for that is incorporated businesses may have to be considered their employees, which increases that companyís risk, and they donít want to bring on that hassle. Therefore they have a policy that they will only hire companies that are incorporated .