A. Hopkins Insurance & Financial Services

Tag: Small business

What Is Small Business Insurance And How Do I Get Started?
Small business health insurance is health insurance coverage for employers with between 1 to 50 employees. Employers sign up for a benefits package for their employees that helps cover medical expenses above what is available through provincial coverage.

Health benefits are a great way to offer better employee benefits packages without the high additional costs.

Every benefits package is unique to the business and can be tailored to support the needs of the business and its employees.

You only need one full-time employee to qualify for a group health benefit plan.

Health or medical insurance from a group benefits plan covers extended medical. While provincial medical plans in Canada offer great free health care they do not cover important health extended medical items that can include:
- prescription drug coverage
- vision care
- paramedical services
- extended hospital and diagnostic care
- access to virtual health
- wellness resources
- dental coverage
An employee benefits plan or group insurance plan covers extended health and dental care for employees. It can also include life insurance and wellness programs for your small business.

How Does Small Business Health Insurance Work?

A small business can get a group benefits plan. In many cases, all the business needs are two or more employees. The business chooses its coverage from an array of different extended coverage options.

Once the business chooses its option it can offer group benefits to its existing and new employees. It is common that the business pays a portion of the premium while the employee pays a portion.

In many cases, the premium paid by the business can be deducted as a business expense.

There are many factors that go into the cost of a group benefits plan. Because each plan is unique to the business it is hard to give an average. A company’s benefits program can be small and include extended health and dental. It can also offer larger packages that include life insurance, assistance, and wellness programs.

Plans can be customized to the needs of the business and its employees.

What Type Of Small Business Should Offer Health Benefits?

More and more employees are expecting extended benefits plans. Employees have more choice in the digital age to work for companies offering a wide variety of benefits.

There is no limit to what type of business can offer employee benefits.

Your business simply needs to have two or more employees. If a new business only has one employee there are still options. That would however be better served under an individual plan until the business grows.

Here are some of the ways a group benefits plan supports your employees.

What Are The 4 Major Types of Employee Benefits?

There have traditionally been four different types of employee benefits.
1. Medical insurance
2. Life insurance
3. Retirement plans
4. Disability insurance
Companies can now offer a wider array of benefits that include employee wellness options. These benefits give your employees more incentive to work with you and stay for the long haul.

In Canada, 92% of full-time employees believe benefits packages help recruit and retain employees. While 75% of employees are more likely to stay if a benefits package is available.

Common Questions About Small Business Health Insurance:

Does My Small Business Need Health Insurance?

As a small business owner, you are required to offer some benefits to employees. These benefits do not include health, dental, or life insurance. Extended benefits as they are called are however important for employee morale and retention. They are advised to keep the needs of your employees met.

As a small business owner, you are required to pay employment insurance (EI), Canada Pension Plan (CPP), and either workers compensation or cover the Workers Safety and Insurance board depending on your industry.

How many employees do you need to get group benefits?

Your small business can get insured for a group benefits plan with as few as one employee. Requirements for a group benefits plan are met when a small business owner employs at least one full-time employee.

How much does health insurance cost small businesses?

Small business benefits plans can be tailored to meet the needs of each individual business. Because of the nature of plans in Canada, it is difficult to place an average cost on the service.

The employer is also known as the plan sponsor and has to pay a minimum of 50% of the cost of the plan. Employees pay the other 50%.

The cost of benefits is a tax-deductible business expense. The cost to the plan sponsor or employer can be deducted from tax payments making it more enticing for an employer to sign up for a group benefits plan.

This article is not to be used as advice regarding small business insurance. It is posted for general knowledge only. If you wish to discuss your specific case feel free to give me a call at (604) 461-6164 or contact me by email at info@ahopkinsinsurance.ca.
May 28, 2022
How to write an engaging caption on social media for your business

“Discomfort is always a necessary part of the process of enlightenment”

-Pearl Cleage

There are many reasons to spend time writing quality social media posts for your business. Whether you choose to wield your own words, or borrow someone else’s, as in the above quote, a great caption can take your audience to great places, get them thinking, spark an interesting conversation around one of your products, or engage your audience in a way that says something about your brand, and who stands behind it. Your audience wants to believe and know you are thinking about something other than your bottom line.

One post or caption with accompanying video or photo can be all it takes for someone to engage, buy, call you, return for more, or pass on a good word.

Even though it’s not a lot of content, a short phrase or sentence, a good caption or post takes some thought.

To start, ask questions such as:

Am I giving my audience a reason to engage?
Am I inspiring them to think outside their own comfort zone, their own life bubble or sphere of influence?
Am I informing them about something that I think will help them in their life or their business?
Am I revealing something honest and real about my company/brand values that others can resonate with?

To begin writing:

Start with an intention. What are you wanting to accomplish with the caption—is this an introduction to your brand? Do you want to tell people what you do? Do you want them to start their own conversation on what you have presented? Do you want them to share?

If you ask a question, make it open ended. When was the last time you walked away from the spa and felt like a new person? What would your revenue look if your equipment maintenance could be finished a day earlier than promised? What is the best thing about a Friday in November? Spur people’s curiosity with a question they can’t help but think about, or scroll on.

Get to the point. If it’s too long, you risk losing and boring your audience. We all know this. Pay attention to what grabs your attention in your own social media activity and behaviours and work towards maximum engagement. If it’s a sponsored post, don’t forget to add a call to action.

Raise the stakes. If the audience doesn’t engage, what will they miss out on? A chance at a one-time promotion or sale, a chance to realize something about their own life or self-growth?

Support your caption with an accompanying image or video. As we all know, visuals are essential. They are what draw people in, prompt them to pause, watch, if only for a few short seconds.

360PSG also recommends keeping it short. They recommend, “Don’t make them click to see more…someone casually browsing Instagram is likely to keep scrolling when a lengthy caption takes them out of their flow.”

Something else that can go a long way is giving the caption a “clean” visual. 360PSG recommends burying the hashtags in the comments rather than in the caption.

Social media is a creative medium. Don’t bore your audience or turn them away with something too conservative. One thing to consider before you begin writing a caption—when you feel the impulse to screen shot something so you don’t lose it in the stream of your social media feed, pay attention to those moments. What caught your attention and inspired you?

Author: ChamberPlan.ca

February 24, 2021
What the Canada-US-Mexico Free Trade Agreement means to you & your business

Nearly three years in the making, the revamped NAFTA agreement came into effect on Canada Day, July 1, 2020.

Our federal government calls it the Canada-United States-Mexico Free Trade Agreement (CUSMA), while U.S. president Donald Trump refers to it as the United States-Mexico-Canada Agreement (USMCA). The lack of agreement on the name of the agreement nicely sums up the bumpy road that got us here.

Getting the U.S. out of the North American Free Trade Agreement was a Trump campaign promise, but the agreement itself was an idea Ronald Regan came up with in 1980. It was negotiated by U.S. president George Bush, Canadian prime minister Brian Mulroney and Mexican president Carlos Salinas de Gortari in 1992, and became law in 1994. It’s a monumental document; free trade between the three NAFTA members was valued at nearly $1.5 trillion in 2018.

With a new deal that took almost the entirety of Trump’s first term to reach, what do the latest changes mean for Canadian businesses?

Cheaper online shopping. Canadians no longer pay duties to have online purchases worth less than $150 shipped across the border. Good news for shoppers but not so good for Canadian retailers, who argue that the change encourages Canadians to shop online in the U.S. or Mexico instead of buying Canadian at bricks and mortar stores. (It’s worth noting that the COVID-19 pandemic changed shopping habits and more consumers are now shopping online.)

Protections for copyright and digital content. The revised agreement will extend copyright protection from Canada’s current 50 years to 70 years past an author’s death, aligning with laws in the U.S. As well, internet platforms are now protected from liability related to third-party information they publish, and consumers will no longer be charged customs and other charges on digital products like music, games, videos and e-books.

More opportunities for auto parts manufacturers. All vehicles must now include 70 per cent North American steel and aluminum, and 40 per cent of passenger vehicles must be made of materials, parts and labour produced or carried out by workers in a plant where the average wage is at least US$16. The downside for consumers is that vehicles may cost more to purchase as the cost to produce them go up.

Even with the new agreement finally in place, it’s still not entirely smooth sailing for Canada-U.S. trade relations. Just as CUSMA eases what has been a couple of years of volatility (in response to U.S. imposed tariffs on steel about a year ago, Canada put tariffs on a variety of U.S. products, including quiche, mayonnaise and toilet paper) the U.S. is once again talking about increasing tariffs on Canada’s aluminum.

It’s a threat that puzzles the Canadian government. According to Prime Minister Trudeau, the U.S. does “not produce enough, nowhere near enough” aluminum to fill domestic manufacturing needs, and especially now, with the requirement for a higher ration of North American aluminum to be used in auto productions. Increasing tariffs on Canadian aluminum, which the U.S. has to buy anyways, will increase costs for U.S. consumers. The decision on tariffs could be made within weeks.

How long will we agree?

After nearly three years of discussions, do we finally have a trilateral agreement all three countries can live with? CUSMA is good for 16 years, but mandates a joint review be conducted within the first six years to determine if all three countries want to extend the agreement for another 16 years. It also includes the option for a country to opt out of the deal with six months’ notice. This option was part of the previous NAFTA and was taken up by the U.S. when Trump tore up the agreement after taking office.

So…in a world where anything can happen, anything could happen.

Author: ChamberPlan.ca

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September 11, 2020
Essential Book List: Marketing Advice for Small Business

Digital marketing evolves by the minute, and there’s always something new to learn. Keep your marketing strategies fresh and up-to-date with this list of some of the best marketing books for 2020.

Some of these books are straight from the marketing canon and others might be brand new to you. From influencer marketing to content writing tips, this list has the major marketing bases covered.

Title: The Social Organism: A Radical Understanding of Social Media to Transform Your Business and Life

Authors: Oliver Luckett and Michael J. Casey

Helps with: Social media marketing

Who would have thought that social media marketing and biology could have so much in common? In The Social Organism, Luckett and Casey argue that social networks closely resemble the rules and functions of biological life.

Memes, for example, look completely different under Luckett and Casey’s microscope: “In sharing and replicating packets of information known as memes, the world’s social media users are facilitating an evolutionary process just like the transfer of genetic information in living things. Memes are the basic building blocks of our culture, our social DNA.”

This book will forever change your perspective on social media and open your eyes to new ways to harness its power in fruitful ways.

Title: Everybody Writes: Your Go-To Guide to Creating Ridiculously Good Content

Author: Ann Handley

Helps with: Content writing

Offering straightforward advice and actionable tips, Handley dispels the misconception that good writing can only be mastered by a select few who possess innate talent and skill. “I am a writer. You are a writer. Everybody writes,” argues Handley.

Book sections include:

● How to write better. (Or, for “adult-onset writers”: How to hate writing less.)

● Easy grammar and usage rules tailored for business in a fun, memorable way. (Enough to keep you looking sharp, but not too much to overwhelm you.)

● Giving your audience the gift of your true story, told well. Empathy and humanity and inspiration are key here, so the book covers that, too.

● Best practices for creating credible, trustworthy content steeped in some time-honored rules of solid journalism. Because publishing content and talking directly to your customers is, at its heart, a privilege.

● “Things Marketers Write”: The fundamentals of 17 specific kinds of content that marketers are often tasked with crafting.

● Content Tools: The sharpest tools you need to get the job done.

This book is a must-read that will leave you feeling confident in your ability to create great content that will boost your business.

Title: One Million Followers: How I Built a Massive Social Following in 30 Days

Author: Brendan Kane

Helps with: Digital strategy and influencer marketing

Making a splash in social media’s endless ocean is one thing, but anchoring your brand with a devoted following can be as elusive as the lost city of Atlantis.

In One Million Followers, Kane will teach you how to gain an authentic, dedicated, and diverse online following from scratch; create personal, unique, and valuable content that will engage your core audience; and build a multi-media brand through platforms like Facebook, Instagram, YouTube, Snapchat, and LinkedIn — all in 30 days or less.

Title: Building a StoryBrand: Clarify Your Message so Customers Will Listen

Author: Donald Miller

Helps with: Brand positioning

Every great marketing strategy starts with an even better StoryBrand. Miller’s book breaks down the elements of a successful brand like they’re the building blocks of a great story. By describing the story points that all humans respond to, the rationale behind people’s purchasing decisions, and how to simplify your brand messaging, Miller will have you reimagining the story you tell about what you do or what you sell.

Building a StoryBrand focuses on seven key principles:

1. The customer is the hero, not your brand.

2. Companies tend to sell solutions to external problems, but customers buy solutions to internal problems.

3. Customers aren’t looking for another hero; they’re looking for a guide.

4. Customers trust a guide who has a plan.

5. Customers do not take action unless they are challenged to take action.

6. Every human being is trying to avoid a tragic ending.

7. Never assume people understand how your brand can change their lives. Tell them.

Title: Tap: Unlocking the Mobile Economy

Author: Anindya Ghose

Helps with: Mobile marketing

By tapping into the data trail mobile consumers leave behind, businesses can leverage smartphones into smarter companies. “When mobile advertising is done well, the smartphone plays the role of a personal concierge―a butler, not a stalker.”

Ghose’s international research has uncovered some fascinating insights into the wildly contradictory behaviour of consumers. “People seek spontaneity, but they are predictable; they find advertising annoying, but they fear missing out; they value their privacy, but they increasingly use personal data as currency,” Ghose argues.

By breaking down complex mobile consumer behaviour into approachable human insights, Ghose makes it easier for businesses to benefit in an increasingly mobile economy.

When well-executed, marketing tells your customers exactly how you stand out from the competition. The fast-changing world of marketing requires business owners to be forward-thinking, nimble, and well-read. Let this booklist be a launch point for your ongoing study of marketing strategy in all its forms.

Author: ChamberPlan.ca

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August 14, 2020
Innovative ways businesses keep going during COVID-19

As the saying goes, when life gives you lemons, make lemonade. Montreal distiller Paul Cirka decided to take his own spin on this old adage when life – or more accurately, his supplier – gave him corn. Instead of turning corn into gin, he made hand sanitizer.

Cirka Distilleries is one of many businesses finding innovative ways to keep the doors open during the COVID-19 pandemic. It’s not an easy task. As the federal and provincial governments take measures to combat the virus, more than a million Canadians lost their jobs in March and by mid-April more than five million people had applied for the Canada Emergency Response Benefit.

Over the last month, many businesses have been declared non-essential. Many have closed their doors, hopefully temporarily, as they ride out the pandemic. Others have turned to alternative ways to carry on. Restaurants are doing takeout and delivery, for example, and fitness facilities and yoga studios are putting classes online.

Some businesses have become even more innovative. Fortunately for companies like Cirka Distilleries, COVID-weary Canadians need a drink more than ever and businesses that make and sell alcohol continue to operate. Cirka saw a need even greater than gin and vodka, however, and using a recipe approved by the World Health Organization, the business has joined distilleries around the world to produce much-needed hand sanitizer. Since March, Cirka’s employees have been working around the clock to develop the antiseptic, which requires a much higher form of alcohol than the usual 40 proof Cirka uses to make its vodka and gin.

Other businesses are also straying from “business as usual”. Bauer Hockey, one of North America’s top producers of hockey equipment, has changed its focus to make another product currently in high demand: masks. Bauer is using hockey visor materials to manufacture full medical face shields, which are meant to protect the wearer from being infected by respiratory droplets that carry the virus. Organizations can request a minimum of 100 face shields directly through Bauer’s website.

Bauer’s venture into medical face masks is a welcome contribution in a time when frontline workers are in dire need of personal protective equipment…and when employees of businesses deemed non-essential would otherwise be unemployed. The switch from hockey gear to hospital gear is keeping 20 people working in Quebec and another 12 working in New York.

Peregrine Retail Design Manufacturing’s in Burnaby normally creates elegant front counter designs for high end clients including Lululemon, CIBC and Starbucks. But when many of its clients were forced to temporarily shut their (undoubtedly fancy) doors, work came to a halt and Peregrine had to lay off 30 per cent of its 85 person staff. Seeing a need in the retail sector determined to still be essential – grocery stores, pet stores and (as we determined earlier) liquor stores, Peregrine quickly turned its sights to manufacturing a product slightly less high end but ultimately more critical in keeping retail workers safe – plexiglass shields.

There’s no word yet on when life will get back to normal. But while the future remains uncertain for many small businesses in this most unprecedented time, one thing we can likely count on is that more business owners will embrace innovation, and find new ways to stay afloat, meet a need and keep their workers working.

Author: ChamberPlan.ca

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May 26, 2020
Keeping your business current during COVID-19: Ted Kouri of Edmonton’s Incite shares his pandemic plan

Many of us are stewing, stressing, wondering what we are supposed to be doing right now, other than swimming for our lives. Do I need a new business strategy? Should I plan for a major pivot—think up new ways to deliver my services or products? Should I be shutting my doors?

“Business as usual” seems a proverb of a long-time past—most business owners are navigating a terrain as foreign as the moon right now. “This isn’t like any other time we have ever experienced,” says Ted Kouri of Incite, an Edmonton-based strategy firm with national reach that helps small businesses grow into new markets and build brand loyalty.

“It feels different than H1N1 or any market crash that has come before because it hit us so fast,” says Ted. “COVID-19 doesn’t discriminate geography or industry, we are all affected, business-wise and personally.”

Most people agree, this is not the time to be ‘making the sale.’ We asked Ted how he is keeping his business current and an asset to others, and personally navigating this time of uncertainty. Here is what he shared:

1. Keep your clan in the loop.

Internal staff communication has looked like the following over the past weeks: Layoffs, down-sizing, uncertainty, and more layoffs. No question, there are lots of scared people. Ted suggests keep all your staff in the loop, whether they are laid off or not. “If your whole team is kept up to date, messaging regarding your business can stay consistent and transparent,” says Ted. “Don’t pretend it’s not difficult when communicating with your team, but don’t let fear rule the day. Be upfront, but positive.”

2. Repackage your services. Never has “adapt or die” been more true in business, however, according to Ted, “It’s a mistake to totally abandon your strengths right now. Instead, get creative about how to bring your new ideas or service segments to market,” he explains.

“There might be new needs your clients have never had before.”

Ted also advises, make short term pivots that have long-term value. “Don’t give your services or products away for free, but repackage them. A different version of your core services might be a four-week offering vs. a five-month plan.” For restaurants and grocery stores, it’s curb-side pick-up. For the beauty industry, it’s using training technologies such as YouCam A.R.T. to stay connected with clients and have them “try-on” new products. Fashion and retail industries are using new app, Streetify to give clientele a virtual shopping experience.

3. Make a game plan. “Back to normal” seems elusive right now. No one knows when that will be; however, having a game plan—a vision for what “later” could look like—can put the mind at ease.

“Businesses need to think about market share that could be gained when businesses are up and running again,” explains Ted. For Incite, 3, 6, and 9-month contingency plans have given them a path forward, some options when it feels like there are none. “A contingency plan doesn’t have to be complicated,” says Ted. “Just a one-pager laying out some avenues to take once we have past certain gates.”

Ted believes brands that go dark—those who don’t have external communication while they are temporarily closed—will have a harder time to hit the ground running when it’s time. “Decide how you can maintain relevance with your clients and stakeholders right now, and make an authentic connection.”

“The small businesses that choose to show up for their clients now will do better in the long term.”

4. Decide your personal mindset. “One of my favourite business pieces is Dan Sullivan’s ‘Scary Times Success Manual: How to be a leader when times get tough.’” How we decide to show up right now matters. A lot. “People admire those who can stay positive, shed light or solution on a situation.

“There has been no better time to show personal leadership and be of value to others than now.”

It may be hard to believe at the moment, but there’s a chance that this crazy time is an opportunity for businesses to get better at what they do. “What’s important is to focus on what is not different,” says Ted. When we are forced to downsize, get creative, save money in order to survive, we quickly see the holes in the way we operate. “There is opportunity that will come from this time. The trick will be to have your running shoes tied on the start line when the sun comes out, and all this is over.”

Author: ChamberPlan.ca

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May 26, 2020
Start a New Decade with These 5 Noteworthy Lessons from Small Business Owners

Entrepreneurs, in particular small business operators and owners, are not strangers to trial and error and misstep. What is important is what we learn and take away to fuel our next move. Here are a few lessons from small business owners to lead us into a new decade!

Hiring Key People. Susan Guillory, President of Egg Marketing & Communications, and contributor to Forbes says finding success is easier when you have the right people on your team. She admits to designing her own logo when she started her company 13 years ago and that it was a big mistake. “I can tell you that this DIY strategy is not effective as your business grows,” she says. She encourages all business owners to, in the very least, find one person who can support you.

Take action on new projects. Neal Schaffer is a social business coach and author of Maximize your Social. His advice is to push new projects forward. “Sometimes if means simply turning down things that we used to accept or deciding to simply unplug from other activities,” he shares. What does unplugging, or disengaging from usual practices look like for you and your business in 2020?

Collect your own data. How do you examine your own customers’ behaviours? Their spending patterns? Their aversions? What questions do they frequently ask? No one knows your business better than you do. Or rather…no one should know your business better than you do. But we are not always great at tracking our own data—that is customer demographics, how they found you, their likes and dislikes, etc. For Larry Kim, founder of Wordstream and CEO of MobileMonkey he believes the key to success is to “fail slightly less often by using more data rather than gut feel in project planning phases…”

How do you plan on gathering more of your own business’ data in 2020?

Tune out the noise and follow your instinct. Instinct—we know it’s there, and yet, we don’t always listen. Sometimes it’s because there is A LOT of noise to break through, but, also, listening to our instincts actually takes practice. Not only is it tricky to pin down that initial feeling we had about a certain business move or hire, but to ignore the other pressures that exist in business environment or society in general can be difficult. Caroline Ghosn, co-founder and CEO of Levo League, says there are always warning signs. “As an entrepreneur, the latitude of failure and of success is directly correlated to people. I am growing more and more attentive to my first instincts, even if I can’t justify them, as they apply to people.”

Keep it simple.

That’s Neil Patel’s simple advice. He is an entrepreneur, investor, advisor and well-known blogger, with expertise in online metrics and analytics. He admits to having many of his start-ups fail. “Typically the failure wasn’t due to the idea. Instead the solution was complicated and hard to use.”

Wishing you every success for your business ventures in 2020!

Author: ChamberPlan.ca

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January 12, 2020
How to Choose a Business Structure: Sole Proprietorship, Partnership, or Corporation?

Whether you’re thinking about starting a side hustle for extra income or making the leap to becoming your own boss, there’s a lot to consider when starting a small business. One of the first decisions to make is the type of business structure you need. In Canada, your business can operate as a sole proprietorship, a partnership, or a corporation.

There are pros and cons to each option, but important differences in terms of startup costs, liability, tax rates, and estate planning should be considered before making a decision. Understanding the key differences between proprietorship, partnership, and incorporation can help ensure your small business starts off on the right foot.

Sole proprietorship

In a sole proprietorship, one person operates a business without forming a partnership or corporation. Any income earned from the business is considered self-employment income and is taxed at personal income tax rates on the business owner’s personal income tax return.

Benefits of a sole proprietorship:

– Simple, inexpensive registration process

– Fairly minimal reporting requirements include:

– Annual personal tax return

– Payroll remittances and filings for any employees

– Can deduct losses from your personal income

– Can deduct expenses including prorated amounts for office and vehicle costs

– Proprietor controls all decision making and receives all profits

Disadvantages of a sole proprietorship

– As sole proprietor, you are personally liable for all debts and any other business liabilities — creditors may make claims against any business or personal assets to pay off debts

– Fewer funding opportunities and may be more challenging to raise capital to help build and grow the business

– Not easily transferable or inheritable in the event of the proprietor’s death

Partnership

Similar to a proprietorship, a partnership is unincorporated but two or more entities are partners in the business, and business decisions are agreed upon together. A partnership agreement will outline the terms of the partnership and how any disagreements or dissolution will be resolved. In the absence of such an agreement, provincial or territorial laws will determine the terms of the partnership.

Benefits of a partnership

– Partnerships enjoy many of the same advantages as a sole proprietorship including relatively low setup costs, expense deductions, minimal reporting requirements, and ability to deduct losses from personal income

– A more experienced business partner can provide valuable guidance and mentorship to a less experienced business owner

– Startup costs are shared among partners

Disadvantages of a partnership

– Consensus is required for all business decisions

– Like a proprietorship, partnerships are subject to unlimited liability — all personal and business assets can be targeted by creditors

– A partner’s liability does not end even after death or retirement for debts and obligations of the partnership that were incurred prior to the death or retirement

Corporation

Unlike a proprietorship or partnership, a corporation is a legal entity that is separate from its shareholders. As such, a corporation pays corporate income tax, which is calculated separately from the shareholders’ personal income tax.

Benefits of a corporation

– Shareholders are not personally liable for debts or obligations of the corporation

– More government funding options to help build and grow your business

– Can write off certain business expenses and may also benefit from additional tax advantages

– A corporation exists in perpetuity and ownership is transferable

Disadvantages of a corporation

– Higher startup fees which may include legal fees for articles of incorporation, federal and provincial incorporation fees

– Higher accounting fees for filing an annual corporate income tax return and any additional bookkeeping or tax planning consultancy

– Additional reporting requirements include:

– Corporate records which must be held for six years

– An annual corporate income tax return including detailed financial statements

– Payroll remittances and filings for any employees

No matter which type of business structure you choose, some common rules apply. Firstly, there’s no escaping the Canada Revenue Agency. Whether you end up paying personal tax rates or corporate tax rates, tax happens! Also, if your revenue exceeds $30,000, you will need to register for GST/HST and track all sales tax paid and collected.

Each business situation is unique and choosing between a sole proprietorship or a corporation can be a difficult decision. While tax savings, limited liability, and greater capital-raising opportunities make incorporating an appealing option, higher administrative costs, additional compliance burden, and more complex reporting requirements might lean in the favour of sole proprietorship particularly if your small business has a relatively low operating risk and a net income under $50,000.

Consulting with an accountant and/or lawyer before launching your business is a wise choice and can save you money and frustration in the long haul. A good corporate lawyer and a professional accountant that specializes in tax planning services can be valuable members of your small business team.

Author: ChamberPlan.ca

Read the original article here.

November 28, 2019