We see many professionals and business owners wanting to grow and build their businesses. They know incorporating is a goal of theirs, but they often feel lost when it comes to knowing when it’s the right time to incorporate and how to do it.
What are the Benefits of Incorporating?
Setting up a corporation can open a lot of options for innovative financial planning. It allows you the flexibility to pay yourself however much time you want, save on tax each year, use the Capital Dividend Account, and accumulate wealth.
For the most part, you’re no longer personally responsible for liabilities since your personal and business liabilities are now separate. Any financial responsibilities for your business will not impact your finances.
(Read more about the Four Key Benefits to Incorporating)
When is the Right Time to Incorporate?
To get incorporated properly, there are people you want to include on your team who can bring you peace of mind and confidence.
This includes the expertise of:
- A small business lawyer
- An accountant
- A financial planner who specialized in working with business owners and incorporated professionals
Here is how each of these professionals can help with the incorporating process.
A small business lawyer will help you set up your corporation and submit the corporate records. They can organize lease agreements, employee contracts, and client service agreements.
Your accountant will give you one-on-one tax planning advice and recommend a corporate structure based on your needs. For example, if you have plans to sell your business in the future, your corporate setup would differ from someone who has no intentions to sell. They will also help prepare and file your taxes, assist with payroll registration, take care of your financial reports, and keep you and your business compliant.
You need to hire the right financial planner to set your corporation up for long-term tax savings and investments. A financial planner will walk you through tax-efficient cash flow planning, proper debt restructuring, corporate insurance planning, corporate investment planning, and maximizing your Capital Dividend Account.
Using corporate investing strategies, you can maximize your investments and save tax. (Here are five ways that you can do that).
In an ideal world, you want all three professionals working together as a team. The accountant and lawyer are essential to setting up your corporation and keeping you on track. The financial planner focuses on maximizing your corporate planning.
Making the most of the expertise from these professionals will reassure you that your corporation is set up for success, and every dollar is maximized. You can sleep better at night knowing your wealth is working for you and your future is secure.