When to incorporate your BC business
As small businesses grow and develop, the owner(s) will start to contemplate incorporating their business. They have heard about the benefits or doing such a thing but may have many questions before they begin.
The first question is always this: what does it mean to incorporate a business? At its simplest, incorporating a business means that you are creating a separate and distinct legal entity. Before incorporation, a business is a possession, like a piece of property. After incorporating, the business becomes a separate and protected entity with legal rights protected by the government.
The second question is when the best time to incorporate is. Here are a few suggestions that might help you decide whether it’s right for you.
If you want to attract investors to your business, incorporating is a good choice. Incorporated companies may appear better and more professional to outside investors and, as a result, may be more attractive to investors.
If your business supplies and provides services to other companies, incorporating is a good idea. One of the risks of hiring contractors for many companies is whether that contractor could be viewed as an employee of the company. If the company hires an incorporated business to supply workers, there is no chance of that happening. The business would be far more attractive to the company.
Financially, incorporating may be very beneficial for you. There are tax savings that incorporated companies enjoy that privately-owned companies do not. Talking to a tax specialist or business consultant would be a very good idea to find out what benefits you may enjoy.
For more information about incorporating, or just to see an expert in small business accounting, contact Naicker & Associates today. They can advise you on the best financial choices you can make for your small business for today and the future.