Home Business Ideas For You - 2. Web Design Business Part 3 is on web design for affordable websites and able webmasters that are in demand especially in the world of Small Small Business. With economy the way it is many are starting out on their own home-based business. The only trouble is that sometimes they do not have the business acumen to get their business on the road.
But this should not deter one from starting out because there is help along the way. What you have to do is attach yourself to an honest mentor who will be willing and able to help you directly. Not the type to whom you will go through a help desk because many a time that does not work. So you should be able to email him directly. Ready? All set? Fasten your seat belt for you will be on a wild but joyful ride.
Now you are ready to set up your business structure. A business is a legal body with its own rights and responsibilities. It can open bank accounts, generate income, write checks and pay taxes. As for the type of options, find out from the country where you reside what kind of business structure is best for you. Are you going to run it as sole proprietor, a partnership or as a corporation? The right structure for your business will depend on different factors including taxation, where the business is located and legal considerations.
A sole proprietorship is the most simple form of business organization. It is the easiest to start and maintain. The business is non-incorporated and is entirely owned by one person. The liabilities of the business are the personal liabilities of the business owner. The business owner undertakes the risks of the business for all assets owned. The income and business expenses are included in one’s personal tax return.
The other form of business structure is the business partnership that is between people who run a common enterprise in the belief they will make a profit. Each partner contributes money, labour, skills, property and will share in both the losses and profits of the business. The partnership can have or not have a written contract.
The third form of business structure is the corporation and it is the most popular. It is a separate legal entity and can own a property separately from its owners. It has to pay its own income tax. There are two jurisdictions under which a corporation can be created. If the business will operate only in one province, the company is provincially incorporated. If the business is across Canada, it has to be incorporated under federal law.
There are different types of corporations and one has to select the kind that describes the type of corporation at tax year’s end. This will determine whether the corporation is entitled to certain deductions and rates. The calculations will depend on whether the corporation is a CCPC (Canadian controlled private corporation ) or a private corporation the whole tax year, at the end of the tax year or at any time of the tax year.
A corporation is only a CCPC if it meets all these requirements: It is a private corporation, it is a resident in Canada or resident in Canada from June 18, 1971 to the end of the tax year, it is not controlled directly or indirectly by one or more public corporations, it is not controlled by a Canadian resident corporation and lists the share in stock exchange outside Canada. There are some other requirements but they seem related to the previous ones.
Other private corporation has to meet all these requirements by the end of the tax year: It is resident in Canada, it is not a public corporation, it is not controlled by one or more public corporations, it is not controlled by one or more prescribed federal Crown corporations or it is not controlled by a combination of corporations described in the two prescribed conditions.
The corporation is a public corporation if it is resident of Canada and meets any of the following requirements at the end of the tax year: it has elected or the Minister of National revenue has designated it to be a public corporation and the corporation has fulfilled the prescribed conditions. If the corporation is a Canadian subsidiary of a public corporation, then it is not eligible as a public corporation.
Other corporations are those that are not Canadian controlled private corporation, or other private corporation. Neither are they public corporation or corporation controlled by a public corporation. Credit unions, general insurers, cooperative corporations and Crown corporations fall under this category.
These three basic business structures have other variations. They are the subsidiary, the joint venture and the branch office. A foreign corporation can enlarge their business in Canada by incorporating a separate subsidiary corporation under Canadian Federal laws or any of the provincial statutes governing corporations. A license or registration may be required.
The joint venture exists when two or more reach an agreement to put in capital, services or goods. The joint ventures are managed through the contract among those involved. The contract should specify the terms of collaboration, the contribution of each and how the profits will be shared. The branch office may be established by a foreign incorporated venture due to tax benefits.
Hopefully this has cleared up some cobwebs regarding sole proprietorship, partnership and corporations along with the other variations. After you have figured the way to operate your business, now we may be ready to tackle the Home Business Ideas For You - 2. Web Design Business Part 4 Business Plan after clearing up how to start Home Business Ideas For You - 2. Web Design Business .