Choosing when, and indeed whether to incorporate is one of the biggest decisions you will have to face as a business owner in the early stages. Some people jump right in from the word go and that is great if cash flow allows it. It’s certainly more expensive from a compliance point of view to operate through a company, as not only are there initial outlay costs but there is also tax and statutory compliance to consider too.
For most it is about finding the tipping point in business growth. If your business is growing rapidly then it is probably worthwhile prioritising incorporation. If your business is more of a slow burn then it might be better to wait and see how it develops. There are a number of factors to consider such as profit levels, succession planning, attracting investment and whether or not you are carrying out licensed activities. These are just some of the factors. Personal financial protection is certainly a consideration and for some high-risk businesses this might actually be the main driver.
Grab a coffee with one of our business advisors if you’d like to talk through this important decision.
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