First off, we don't think of un-incorporated businesses as small businesses, but instead as opportunity for growth and expansion.
Un-Incorporated businesses need support and guidance so that you grow your business, you can yield from any personal tax benefit while your dedicated accountant will be there to guide you through small business tax benefits and filing, then when the ideal tax and business situation occurs, guide you through the transition and operation as an incorporate (or corporate) business.
Un-Incorporated businesses are also known as Proprietorship's (where you are the only owner) and Partnerships (where you and one or more partners all operate as un-incorporated owners).
Are there benefits to being unincorporated (or not a corporate business)?
The answer is depends on what stage your business is at.
Here are the benefits or forming and operating a un-incorporated) business:
- Ability to Pick Company Name: Through the Provincial Authorities you can pick your company in which you can use to receive payments, marketing etc. We can also refer you to our incredible Web and Social Media provider who will take your business to the online world.
- In-Expensive to Start: Yes, it is correct that forming a small (or un-incorporated) business is inexpensive, ($60-$200 depending on the what Province).
- Attached to Personal Return: A small (un-incorporated) business is prepared as a set of schedules that are attached your Personal Income Tax Return, which can make the filing fees ranging between $50-$80 in addition to your Personal Income Tax Return preparation.
- Personal Tax Benefits: While you business is in the initial stage and in experiencing a loss, this loss can be deducted against other income.
As your accountant, we also must let you know about the limitations of operating as a small (un-incorported) business:
- Liability Exposure: As an un-incorporated business is effective yourself operating as your business name, your personal assets can be exposed to claims made from the business. Incorporated companies, business claims stop at the incorporated company, protecting personal assets (with the exemption of taxes and personal gaurantees).
- Company Name Limitation: While you can pick your company name, an incorporated company can supersede your name registration, requiring you to rename and re-brand your business.
- Tax Benefit Limitations: While you can claim un-incorporated losses against your other Personal Income, once your business is profitable it is exposure to the bell-curve rate of Personal Income Tax which can climb as high as 43% (verse 17% for incorporated businesses).
- Selection of Corporate Year-End: While as an un-incorporated company, your tax year-end must be December 31st, incorporated company can select any date within the calendar year for it's year-end. While the most important factor when picking this year-end is for deferral and savings of additional corporate income tax, other factors are also considered to ensure that the most optimal corporate year-end is selected.
However, ever small business needs to start somewhere and with our guidance, you will grow your business, with our firm there to assist you through the un-incorporated stage and then the transition and operation as an incorporated company.
What is Next?
This will depend on the services you need for your un-incorporated business (select from the tabs on the left):
Let's get your un-incorporated business off on the right foot. From ensuring the feasibility and futue profitability (including business plan preparation) to picking not only the right company name, but also Web and Social Media branding, your dedicated accountant and our team are ready to help you.
We suggest you start with booking a consultation with your dedicated accountant. You can book this appointment by either:
Your dedicated accountant and our team are available for assisting all area's of your business.
This is includes:
- Bookkeeping Services: We offer data entry in our offices, remote in your office and on-line using all accounting platforms such as Quickbooks Online, Sage Online, Freshbooks, NetSuite, Xero, Wave, Zoho Books, Patriot etc.).
- Payroll and Human Resources Services: Through our sister company CDNPayroll.com, we provide full payroll and human resources at rate more affordable than other payroll services.
- Financial Statement Preparation: Understanding the operation of your business on an on-going basis is vital for Budgeting and Cash-Flow, Income Tax Preparation, not to mention when it comes to financing for expansion or operations, your dedicated accountant can prepare the required financial statements.
- Business Consulting: Your Dedicated Accountant is only a Text/SMS so you can ask any question and yes outside of regular hours as we understand that your business needs support when you need it.
- Computer Consulting: Our support team can provide all levels of computer consulting from hardware and software selection to networking and on-location and cloud server, and not to forget a comprehensive backup solution to make sure that your business operates without any interruption.
Remember, your Dedicated Accountant is only a Text/SMS away. You can also schedule an appointment to discuss business operations, (including if you are a new client to our firm):
Don't worry your dedicated accountant is here to prepare your Personal Income Tax Return with your un-incorporated business schedules.
You will find that your dedicated accountant won't just transfer figures onto the tax schedules but instead make sure that every business deduction is ulitized to benefit your Personal Tax Filing.
Continue by the following for Business Tax Checklist and Appointment Booking Options:
Your transition from an un-incorporated to an incorporated company is based on several factors including branding, liability exposure and perhaps most important the level of taxes.
While an un-incorporated company is attached your Personal Income Tax return, your income tax rate will bell-curve upwards to a maximum of just over 43%. Compare this to an incorporated company whose corporate ta rate remains steady at 17% for the first $500,000 of net income. Blend this into a strategic corporate and personal tax plan that your dedicated accountant will prepare, you maximum personal and corporate tax will remain under 20% for the first $500,000 in net income.
If you are already a client of our firm, then your Dedicated Accountant will already be following the performance of your un-incorporated company to ensure your transition to an incorporated company occurs at the optimal time, including the defining of the most optimal year-end for your incorporated company.
If you are a new client or would like to discuss the transition of your un-incorporated company to an incorporated company, we suggest that you book a consultation to discuss:
Book Video or Phone Appointment by Phone
You can book your Telephone Appointment with our accountant by calling (Clicking the button will automatically dial our office):
You can click on any of the above numbers to dial automatically
After you book your Telephone appointment with us, if you have questions or content that will assist our meeting, you can Click here for options on sending this information to our office.
You can click on any of the above numbers to dial automatically
After you book your Telephone appointment with us, if you have questions or content that will assist our meeting, you can Click here for options on sending this information to our office.
Book Onsite (Mobile Office) Appointment by Phone
We offer very limited amount of on-site (Mobile Office) appointments.
Prior to booking this option, please consider either a Zoom, Google Meet or Phone Appointment as all of these are available as soon as today or tomorrow. By selecting these options you leave on-site appointments for those who are not able to book those due to either technical, age or medical conditions.
Continue by Calling:
You can click on any of the above numbers to dial automatically
After you book your Telephone appointment with us, if you have questions or content that will assist our meeting, you can Click here for options on sending this information to our office.