A recurring question I receive is – what are the benefits of incorporation?
They are:
Limited Liability
Opportunities to Manage Income Swings
Ownership/Succession Vehicle
Prestige/Professional Image
Tax Planning Opportunities
Capital Gain Benefits
Is a corporation right for you. That depends on your situation and your plans. There are lots of pros and cons. We can review the alternatives and help decide what’s right for your business.
Improve the shoebox. Purchase a small portable file box or accordion style box. File your invoices monthly and ask your accountant to provide you with unadjusted statements.
Ensure your records are complete and all invoices are filed in the box – a lot of calls are made for the 11th and 12th cell phone bills. Have your teenager summarize all of your bills or enter them into QuickBooks.
Make your instalment payments on time to avoid interest and penalties.
Open a business banking account if you don’t already have one. Keep personal and business expenses separate. Your bank reconciliation will catch missing expenses and ensure your records are complete and accurate.
