Growing a business to the next level in a post COVID world
2020 should be the year you decide to incorporate your business. As many businesses pivot and adjust to the challenges of COVID, greater liability protection and tax incentives are the best way forth. They have compiled 4 of the questions people have asked them the most to try and help you understand what is the next step for you and your business.
1. Are you building your business with the intention of selling it?
If so, incorporating your business is the best way to prepare yourself for an eventual sale. If you are starting your business to sell it eventually, then incorporation can save you a lot of tax.
If you operate your business through a Canadian Controlled Private Corporation (CCPC) you sell your shares at a gain of $867k (approx) without paying any tax via the lifetime capital gains exemption (LCGE).
2. Is your company making more money than is being spent?
If your business is earning more than you need for living expenses, you can leave the extra cash in the company. This means only the lower rate corporate tax is paid and not the higher rate of personal tax.
The additional tax is deferred until it’s paid out to shareholders in the form of wages or dividends.
3. Are you looking to attract investors?
If your business is growing and trending in the right direction, perhaps you need a quick injection of cash flow to increase your client base and revenue generation exponentially. By having multiple classes of shares in your incorporated entity, you can explore opportunities and make shares available to an angel investor.
4. Do you want protection?
If your company is looking for long-term stability and protection under limited liability, then incorporation is the right fit for you.
Contact Them:
If you recognize yourself or your business in any of the questions that we asked here, you might want to contact the Nuraney Law Group for more information or for legal counsel. They are there to help you understand the legal process of a business venture and to give you tips and information on how to make the best out of this weird situation that is Covid.
Media Contact
Company Name: Nuraney Law Group
Contact Person: Ari Nuraney
Email: Send Email
Phone: (778) 997-1104
City: Vancouver
State: BC
Country: Canada
Website: http://www.nuraneylawgroup.com/
