This question is asked of us at least once a month. Unfortunately it's not a simple yes or no answer. Every Business owner has different long-term goals and lifestyle plans. As your business is your source of income, the decision to incorporate is one that will be heavily dependent on your personal goals and lifestyle choices.However, here are some of the more important points to consider...Don't incorporate without first doing your sumsAll too often business owners decide to incorporate for what they genuinely believe are good reasons, but they dont take tax advice first. While this might not necessarily cost you money, you could be missing out on the opportunity to save thousands in tax over the next 10 years.Know clearly what you want to earnA big part of deciding to incorporate will be the level of profit the business is making versus how much your ideal salary is over the next 20 years. Once you know what you want your salary to be (even if it's not currently achievable) then your Tax Advisor will have a valuable oiece of information to include in your tax plan.What's Your Exit Strategy?Will your kids become involved? Will you sell the business? How will you get a lumpsum out of the business when you want to strt working. If there's no lump-sum for you at the end of the road, then you have to wonder what you are building? Come Up With One Good Reason WhySo often we see sole traders incorporating for reasons we dont understand. There's a reason, but it brings no clear financial advantage, no additional security and no tax saving. So, before you incorporate make a strong case to yourself as to why it's a good reason to incorporate...because for some businesses it's not.If you're thinking of Incorporating your business......call Jimmy on (01) 601 0005 to arrage a FREE Introductory Meeting to tease out some options. At the end of the meeting he'll tell you honestly if now is a good time for you to incorporate.
