WHEN SHOULD I INCORPORATE MY BUSINESS? (PART THREE)

In Part One of 'When Should I Incorporate My Business?', we discussed the major considerations for incorporating your business, namely limited liability and income tax planning. In Part Two, we discussed the Cash Flow aspects of incorporation, both positive and negative. In part Three, I want to discuss some of the intangible benefits of incorporation.

The first benefit that comes to mind is 'credibility'. If your company has 'Inc.', Incorporated', 'Ltd.' or 'Limited' after it, you will be perceived by your customers, suppliers, bankers, etc. in a much more credible way than if you are a sole proprietor or partnership with 'Reg'd.' after your name. Along the same line, I always recommend that my client's obtain a G.S.T. number whether they have reached the $30,000.00 threshold in sales or not, for two reasons;

1) The company may be perceived as being much larger than it really is, in that, it will be seen as having sales in excess of $30,000.00. If nothing else, it will not tell the world that your sales are less than $30,000.00;

2) The company will be able to claim back from the government, the 13% H.S.T. it paid on all its eligible business expenditures.

A second benefit involves the registration of the company's name. If you have registered the company's name as a sole proprietorship or partnership, you have to reregister the company's name every five years. If you have incorporated your business with a name, that name is protected as long as the company's charter is in good standing.

COMMITTED TO INCORPORATING YOUR COMPANY
THE RIGHT WAY, THE FIRST TIME


Recipient Of
The Oakville Beaver's
Readers' Selection
1st Place Diamond Award
in the category of
Incorporation Services
for ELEVEN YEARS in a row