Incorporated....to be or not to be?
That is certainly the burning question when you are currently a sole proprietor dreaming of making it big. Whether ’tis nobler in the mind to suffer the slings and arrows of paying an outrageous fortune to lawyers and accountants.
Why just getting a “notice to reader,” the document that provides your accountant with indemnity in an audit, if your financial statement is found to be inaccurate, that alone can cost anywhere from $1700 to $2500 depending on the firm. Whereas a sole proprietor’s accounting fees for the entire year are usually well under $1000.
Ay, there’s the rub!
How do you make this kind of decision?
Every situation is different. Each entrepreneur would have their own motivation but you definitely want to be sure your reasons for incorporating at this juncture justify the additional cost of yearly accounting and attorney fees.
Yes, you can incorporate online or in any registry office, but using the services of a legal professional not only ensures that your company is set up for now, as well as for the future. In the case of a business partnership, you can implement appropriate practical agreements, such as what is known as a “shot gun clause,” to allow you to exit or buy out the other person, instead of being stuck in a soured relationship until you finally shuffle off your mortal coil
Preferred Client Services, bookkeepers in Edmonton, AB, working as business partners to make a positive difference to your bottom line!