Advisory for Business and Individual
Starting a business requires very little thought but much to think about, we understand the need of the hour is to setup the right organization structure based on the needs of the client and the need is to simplify all the features of the company from its inception, to its maintenance right until where you as a client would like it to run till. We as an accounting firm can help you in providing the assistance you require such as an official registration with the federal and provincial government, helping you with understanding which business structure or form of organization suits your needs.
Individual Owned Companies
With this form of companies, you can consider the notion of opening your own business with the help of a partner or a few of your friends, all you require is a little investment and some sound advice from one of our accounting services staff. With this company you would be fully responsible for all the costs, debts and obligation of the company and all the profit would be yours.
The cost for starting your own business would be relatively low but the liabilities would also depend on the financial backing which you possess. The cost of starting your own business is relatively low.
In this form of business there is a direct control of decision making and the capital required to start and build your business will be relatively low.
There are other advantages of starting your own business, the most important is that the liabilities will be solely taken from you as an individual which may include business debts and personal assets both of which depend on your income made from running the business.
Income would be taxable at your personal rate and if your business is profitable then you would require to pay more taxes, if your business is making a loss, then you will fall in a lower bracket by deducting losses from your personal income and lower tax brackets when profits are low.
Partnership can be formed with the help of you and other individuals when you do not want to include your own business. This would be a good structure if you wish to be liable only limited amount if you do not want to take part in management or control of the business and hence would be liable for the debt only on a specified extent.
With the help of a partnership you would liable only until a limited extent as has been drawn out at the start and you would combine financial resources with your partnership client. Terms and condition of your role in the partnership can be drawn up with your partner and you can protect yourself in case of a disagreement or dissolution.
When establishing a partnership you should consider the following points. You should protect your interests in the partnership, you should properly define and establish the terms of partnership with regards to issues like profit sharing, dissolving the partnership and you should see that you meet the legal requirement.Advantages of Partnership include:
- Easy to create a partnership business, but the liabilities are unlimited and hence personal assets can be used to pay of personal debt.
- Start up cost depends on the finance collected between you and your partner and you will have equal share in the management, profits and assets.
- There are tax advantages, if income from the partnership is low or loses money.
Incorporating your business, is another strategy used at the federal and provincial level, when your business is incorporated it is considered separate at the functioning and separate at the stakeholders and shareholders level. As a shareholder of a corporation, you will not be personally liable for the debts of the company.Advantages of Corporation include:
- Limited Liability of the companies functioning and it is more expensive to incorporate than a partnership
- Ownership is transferable and profit stake are also depended on the terms and agreements
- Continuous existence and easier to raise capital
- There are possible advantages in tax as the taxes for incorporated business are less.