starting
a Business

business Start-Up Services

Opening your own business is exciting and thrilling. A methodical plan of action dictates whether a small business will make it or not. Success lies in the approach you take and we help you avoid the pitfalls that many small business owners make when starting. Start strong with expert business setup services from
M Bloomberg Professional Corporation.

choosing a Business structure

We help you:

Select a business structure that best fits your needs by evaluating tax advantages, legal exposure, ease of operation and portability should you need to relocate
Select the right accounting software by evaluating your budget, needs and hardware
Establish billing and collection procedures to maximize your cash flow
Establish procedures to monitor and control costs
Setup a home office so you can maximize your tax deductions
Prepare and file all required provincial and local licenses and permits
Prepare and file your application for your CRA Business Number
Provide payroll and payroll tax filing when you bring on your first employee
Comply with employment laws so you don't get hit with fines and unhappy employees
Identify your business insurance needs
Develop a solid Partnership Agreement. This is an extremely important document for all new partnerships and will help prevent a tremendous amount of financial and emotional problems down the road

is incorporation right for me?

Many clients ask us about the most effective way to set up their business. Their primary question is whether they should incorporate. While the details can be very complex, we have tried to simplify them as much as possible.

Advantages and disadvantages of incorporating:

General

The biggest advantage of incorporating lies in the limited liability for the shareholders.

Under the law, a corporation is a legal person that is distinct from the shareholders who own it. This means that individual shareholders are not personally liable for the debts and obligations of the corporation. If a corporation fails, the shareholders will lose the amount of equity invested in their shares.

One disadvantage of a corporation is that income is taxed at two levels: first on income for the corporate entity, then at the shareholder level where shareholders are taxed on any dividends they receive.

Specific

The small business tax credit may lower your tax rate for the first $500,000. The breakeven on a professional or self-employment income is around $50,000 net income.
Business tax returns are more complex, so they cost more to prepare. This is factored into the comment above.
If you have major assets built into the business, such as medical equipment, you will require a section 85 roll-over again costing additional overhead.
While dividends are taxed twice, the tax on dividends is still less than the tax on salary dollars.
Finally, monitoring and reporting on corporations are more stringent than for an individual business set up as a proprietorship or partnership.

Call us at 905-474-0303 or contact us by email for more information.