The Minuses

Incorporation requires you to make regular statutory returns that provide general and accounting information to the public. This information is pedestrian and compulsory. You still have to submit similar figures to the taxman each year even if you are trading privately. There are costs associated with preparing and sending these returns, which are obviously higher than if you aren't incorporated.

You need to ask yourself two key questions:

♦ Can I even operate without being incorporated?

To make life easier, most countries operate a tiered system making the costs and complexity of the annual returns lower for smaller traders.

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