Skans Accounting

Business Registration

Business Start-ups & Incorporation of companies:

  • Register your business name.
  • Complete incorporation on your behalf or provide you with full incorporation kit.
  • Determine what will happen to your current business losses and future profits.
  • Determine what business assets and goodwill to transfer to the corporation.
  • Choose a fiscal year end or calendar year end and when to incorporate.
  • Develop a mix of salary, dividends and bonuses to be paid to yourself and others.
  • Set up company books, records and government filings.
  • Facilitate management decisions towards a successful business.







Proprietorship

Pros

  • Easy to start
  • Low start-up costs
  • Low regulations
  • Owner controls decision making
  • All profits to owners
  • Tax advantages
  • Minimal working capital
  • Business losses can be claimed on

Cons

  • Unlimited liability
  • Difficulty in raising capital
  • Higher taxation rates with higher income
  • Lack of continuity
  • Business reliance on self
  • May be difficult to sell

Pros

  • Easy to start up
  • Low start-up costs
  • Additional sources of capital
  • Tax advantages
  • Limited regulation
  • Broader management base and complimentary talents

Cons

  • Unlimited liability
  • Difficulty in raising capital
  • Divided authority
  • Suitable partners may not be available
  • Conflicts between partners
  • Partners can legally bind each other
  • Lack of continuity
  • Profits are smaller per share






Partnership






Corporation

Pros

  • Limited liability
  • Possible tax advantage
  • Ownership is transferable
  • Continuous existence
  • Specialized management
  • Separate legal entity
  • Easier to raise capital
  • Capital gains exemptions

Cons

  • More expensive to set up
  • Closely regulated
  • Extensive record keeping
  • Dividend taxation
  • Shareholder liability
  • Personal guarantees can undermine limited liabilities