You need a vision, the drive and passion to be successful as a business owner.
Businesses are started with savings or borrowed money which will be lost if the business fails. Businesses hire, train, pay employees wages and usually offer benefits as well. Small businesses generate most of the new jobs in the country and are the catalyst for tax revenues collected by governments at every level.
Being an entrepreneur is an extremely hard job with no guarantee for success. The first several years are all about long hours and sacrifice, both personal and financial. There are no paid holidays or sick pay and no guaranteed contributions to pension plans. Many of these businesses sponsor kids sports teams and donate cash, merchandise or services to local charities. Most do this year after year and don’t ask for recognition because they want to give back to the community that has supported them.
To help protect themselves from personal liabilities, owners usually incorporate the business and shares of the company are created. Business owners can choose to be paid with dividends from the company’s shares instead of drawing a salary. Dividends are taxed more favorably so this makes good sense. The owner still pays taxes on the dividends, the business pays taxes on the profits and employees pay taxes on their wages. Many average adult Canadians buy shares of Canadian dividend paying companies on the open market and also receive favorable tax treatment on those investments. This benefit is not exclusive to business owners.
I read recently that when you add up all the different taxes that the average Canadian pays, it is a whopping 43 per cent. All levels of government need to spend the tax money they collect more efficiently and stop trying to create more tax revenues to cover their over-spending addictions. Only then will we have a level playing field for all.
Jim Kimmerly