If you're a business and structured as a proprietorship or partnership then incorporating might be your next step. Please give us a call or use our contact form if you're thinking of incoporating and need some advice. Having a reliable accountant is paramount .
Here are some brief advantages of going corporate:
• Limited Liability and Separate Legal Entity
When it comes to debt, contracts and legal implications in business the owers are responsbile for them, however when incorporated the business is treated as a company not a person leaving you out of legal affairs and debt. Other forms of liability can be contracted such as personal guarantee that could change the way a corporation is handled.
• Tax Advantages and Capital Gains Deductions
Lowering your taxes is what we all would like to do. Taxes are different with corporations and can save you money. Since the owners and the corporation are seperate, this can offer some tremendous advantages. Incorporating also has lower rate rates. It is strongly recommended that you contact us if you wish to look into the tax advantages and if they apply to you. Every case is quite different.
• Greater Access to Capital
Banks and financial institutions tend to favor lending to corporations, so the rate is typically lower for borrowing. Other forms of business rely more on their own money. Being able to borrow gives your business more options for expanding or other areas where capital is needed.
• Continued Existence
Even when the owner(s) die a corporate can continue to live as the ownership would simply transfer to shareholders' hiers. This gives a business more stability and allows a business that is incorporated to plan longer financing options and obtain better rates.
Incorporated is a difficult process and with our help we can assist with it. It is only beneficial for some but it doesn't hurt to call us and go over it as an option. Our corporate services, professional staff and advice could save you money each year.