20 — Wednesday, October 25, 1989 — North Shore News DIANNA-LYNN SCAMMELL NOTARY PUBLIC 2908 Lonsdale Avenue, North Vancouver, B.C. 988-6668 (Business) 645-6895 (pager) Real Estate Transactions Mortgages/Wills Powers of Attorney Statutory Declarations Notarizations THE NORTH SHORE’S NEWEST OFFICE SUPPLY COMPANY ~~. Croft Office Products 1196 Marine Dr., North Vancouver, B.C. Y7P 188 PHONE: 980-4044 FAX: 980-2111 Start your day | the Royal Way | Professional brewing equip- j ment for the freshest coffee ever. Free delivery right to your door. Call for a free demonstration. THE ROYAL BANK OF CANADA R. 0. (Ron) Soley Account Manager Busaness Loans 1541 Lonsdale Aven North Vancouver B c V7M 202 . (604) 986-7141 fax (604) 985-9379 Incorporation can be WE ARE all familiar with the word ‘‘corporation,’’ but to some it is as confusing and alien as the word ‘‘computer.’’ However, both corporations and computers are valuable tools when controlled by knowledgeable peo- ple. Corporations originated in the 16th century. Although the precise nature of incorporation has changed, two major benefits re- main the same. First, the responsibility for wrongful acts done by the com- pany stops with the company. if a company enters into a con- tract which is breached, it is the company that is liable rather than individual shareholders or direc- tors. Second, a company may be able to take advantage of various taxa- tion provisions. A corporation may be able to teduce the impact of tax on profits in ways not available to individu- als, partnerships and proprietor- ships. In order to obtain the benefits of incorporation a company must be incorporated in accordance with a regulatory act, such as the British Columbia Company Act or Canada Business Corporations Act. In B.C. the Company Act grants the company the power and capac- ity of a natural person. However, the Act specifically requires that the company disclose to those that deal with the comi- pany that they are dealing with a company. In other words, to take advan- tage of the benefits of incorpora- it’s easy to see why a large business organization should incorporate but the rules arent firm about small companies tion, you must make it perfectly clear to all business contacts that jon to business they may be faced with limited corporate liability. Within the framework of a cor- porate entity a person may wear several ‘‘different hats’’: for ex- _ample, he or she could be a share- holder, director and employee all at the same time. There are, however, different tights and responsibilities attached to each capacity. A director has a duty to manage the affairs of the company with a view only to the best interests of the company. A shareholder is primarily interested in a valuable financial return. An employee wants to be paid on time. It’s easy to see why a large business organization must take advantage of incorporation. The question of whether a small private company should incor- porate, instead of carrying on as a proprietorship, depends on the vusiness’ particular circumstances. This article was prepared by Bradbrooke, Crawford & Green, GST to affect small firms iF, AS and when the proposed federal goods and services tax (GST) happens, Ottawa has prom- ised several special measures to help small business operators han- dle the work and expense involved. They include a ‘‘small traders’ exemption’’; ‘‘streamlined’’ ac- counting systems, less frequent fil- ing requirements than for large firms; and payment by Ottawa of an administration fee of up to $600. Financial help is also prom- ised to help pay for adapting cash registers to handle the tax. As “small traders,’’ businesses with less than $30,000 in annual sales may opt out altogether. In theory this could let as many as 750,000 businesses out. However, there may be a “‘catch 22”’ situa- tion, observers say, since many of the smaller businesses will proba- out there! Enterprise Development : | nal a : PANN se Pees «Centre bly choose to be in the system in order to claim credits for the GST they pay themselves on goods and services used in conducting their businesses. To minimize ‘‘paperburden,” small businesses with annual sales of less than $500,000 will be able to calculate their tax only once a year and remit quarterly install- ments. Firms with sales between $560,000 and $6 miilion will be ailowed to calculate tuxcs due and remit quarterly. Businesses with sales over $6 million will remit monthly. “Streamlined accounting’’ pro- cedures will permit businesses that sell a mixture of taxable and tax- See GST Page 21 doesn’t Bre have to be ... Al weet, Lean We provide affordable counselling, training and support ser- vices for new and existing business owners/managers. Here are just some of the services we can offer you: i) c.A.T. 90: Only 2 spaces !eft! A unique, new 90 hour Customized Applied Training pro- gram to help you beat the “business jungle’. Applies to home-based and self-employed business owners too! CEIC may reimburse up io 66% of program fees. This one's for you! WORKSHOPS: OCT. 30, 7-10 P.M. DESIGNING EFFECTIVE ADVERTISING. Bring your idea or examples and yet practical advice from the pros. Fee: $30. Call now to register. To the Royal Bank. Where you'll Now that you've got our business card, [i meet experts who only deal with businesses get in touch. For more information on the A like yours. North Shore, call 986-7141 of 922-4165. They'll offer you the time you wane, We can help your business go places. and all the experience you need, as well as @ THE ROYAL BANK OPEN HOUSE: OCT. 26th. 4-7 P.M. Join us at our new location. $= NSEDC Noith Vancosver 984-2004 a range of tailored banking services to fit OF CANADA the most ambitious entrepreneur.