Business To partner or not to partner SO YOU'VE made the big decision to go it on your own — to become a self-made millionaire. By LISA SMEDMAN Now the question is, can you really go into business all by yourself? Many entrepreneurs choose to set up their business as a ‘‘sole pro- prietorship’’ so that 100 per cent of the profits go into their pockets. But there are also advantages to forming a partnership. For one thing, no one per- son will always be able to handle every aspect of a business. While some people are natural organizers, they fall flat on their faces when confronted with simple ac- counting. Others are a whiz with numbers, but can’t deal with people. And so on. A sole proprietorship can be formed under an individ- ual’s name, and need not be registered unless a business name is used. With a part- nership, a ‘’declaration for partnership and business name’’ form must be filled out and forwarded to the B.C. Ministry of Consumer and Corporate Affairs. And, with a partnership, the percentage of income that each partner takes from the business must be careful- ly worked out at income tax time. If a sole proprietorship goes bankrupt, the owner can be held liable for all debts. The only way of pro- tecting personal property and ftuds is to transfer everything into the name of your spwise (and then hope that your marriage doesn’t break up). Jn a partnership, either partner can be held per- sonally liable for debts, no matter which partner put more money into the business. This form of partnership is known as a ‘‘general part- nership’. The only way to protect personal funds in a partnership is to enter it as a ‘imited partner’’. These partners can not act on behalf of the business, however, and the company must be registered with the Provincial Registrar of Companies in Victoria. In both sole proprictor- ships and parinerships, alt profits are taxed at personal tates. Often, in a_ self- employed business, it is a good idea to have your SSSSSSSSSSSSSSSS ane IMPROVE YOUR CHANCES TO WIN LOT TO ¢Re-usable. »© More chances of winning with our mathematically calculated combina- : tion chart. ¥ ¢ Amazing * Any 3. 4, 5 or 6 out of 10 numbers - results. are correct, you are a winner ¢ Simple and easy explanations. Send your address and $3.00 for postage and handling to. {AGA MATHEMETICNN spouse us a partner, or to pay your spouse a salary. This is a means of income Splitting that can lower the income tax you pay. In either case, if the pro- prielor or partner in a business venture dies, the company effectively ends. A new company must be form- ed at this point. One way to get around this is to register the business to get results THE VOICE OF NORTH AND WERT VANCOUVER: ‘horth Shore’. -.’ SUNDAY > WEDMIEBDAY © FIIDAY 980-0511 SSESSSSSSSSSSISSSSSSSSSSSESSSSSSSESSSSSSSSSS SS SSSESSSSSSESSSS PO. BOX 366 1215 DAVIE ST. §f VAN. V6E1N9 @ as a “limited company” or “corporation’’. These com- panies have Ltd., Inc., or Corp., after their names. Turning your business into a corporation will make ownership of it readily transferable. It is also a way to attract investors, because anyone investing in a cor- poration is not personally liable for its debts. For the beginner, however, a sole proprietor- ship or partnership is usually the best way (o start. Sanderson Robert Allen Jackson e e e Kobe © Woeller 35 % off all blinds YH , gh “ CONSISTENTLY HIGH QUALITY AT REASONABLE CAREFREE KITCHENS REYNOLDS Gabinet Shop 1300 Lloyd Ave., N. Van. 985-9527 Hours: Mon.-Fri. 9:30-5, Sat. 10-4 Bert Woll Aftex Pzide of Paris Caya @ Tritex ¢ Superior © Flexalum * Levelor and many more fabrics to choose from 25% off list Maxwell Bedsprea 31 - Sunday, August 4, 1985 - North Shore News RATES Marine Dr Reynolds Pal Cabinets . Hameinen 2 i | 20% off Drapery & Upholstery Fabrics price § We’ve moved to larger premises, one block east of our old location, to serve you better! Chalet SY beviors Ltd 1585 MacGowan Ave. North Vancouver 988-2324