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The start-up process begins with understanding what kind of business you plan on running says Andrew Degenholtz, ValueMags President. Scotia Bank releases information identifies that there are three primary business structures in North America. These structures include, sole proprietorship, partnership and a corporation. A sole proprietorship and partnership are very similar in the sense that you will be paying your own personal tax based on your business income. The only identifiable difference between the two is that in a partnership your personal tax will be based from the profit from the partnership earned to you.
Degenholtz strongly believes that the start-up process is the most crucial because it will serve as the foundation to your company such as ValueMags. It took him a couple of years to get ValueMags off the ground and that is because he spent so much time getting ValueMags a team of individual that were dedicated to the company’s goals and mission. Whereas a corporation is a completely separate legal entity meaning that the owner is now employed by this corporation and its shareholders will pay their own individual taxes. At times, it can be hard to identify what business structure is best for you and your working environment. Thereby, RBC (a Canadian Bank affiliated with the United States) has provided on its website a quiz of sorts identifying the major differences between a sole proprietorship and partnership in comparison to a corporation. This quiz sums up the fact that individuals will plan to have business structure of sole proprietorship or partnership if the stake holders plan for the growth and profits of the business to remain relatively more constraint. Oppositely, a corporation plans for larger expenses and growth within the first couple of years within the start-up process.
For more information about ValueMags’ business process and what they do, visit their new blog above.
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