Aren't there any other matters to consider in deciding whether to incorporate or not?

Higher administration costs to comply with company law, payroll and bookkeeping is one factor. Another issue is pension planning. Extracting profits out of company as dividends rather than salary means that there will be no "net relevant earnings" and therefore pension contributions can't be made. But advent of stakeholder pension plans has meant that contributions up to œ3,600 per year can be made without need for any earnings. If a person does not wish to transfer funds in existing plans into stakeholder because of high charges, there is a way out: best net relevant earnings (i.e. salary) in five consecutive years can be used for making contributions for next five years, even if there were no salaries in remainder four years. It is comforting to know that entitlement to basic state pension is not affected by taking a salary from company at level of a person's personal allowances i.e. œ4,615.

Furthermore, an individual may decide not to bother with pension plans and instead invest in ISA. Often, these can be more efficient than pensions but that's beside scope of this article. If that option is taken, no salary is necessary.

Another factor is business motoring. It might be tax advantageous for an unincorporated business that owns many cars not to incorporate because if these cars have some private use there will be benefits in kind taxed on users. These are generally higher than straight apportionment between private and business for all car running costs in case of sole traders.

The conclusion is that there can be considerable tax savings waiting sole trader who decides to go down road to incorporation. But, one needs to proceed with caution and careful planning. And don't forget biggest advantage of incorporation, which is Protection from Personal Liability. Incorporating is one of best ways to protect a business owner from personal liability. Shareholders of a company are generally not liable for obligations of company. Creditors of a company may seek payment from its assets, but not assets of shareholders. This means that business owners may engage in business without risking their homes or other personal property.

Thank you for taking time to read this Article. I hope you've found it useful. If you have, please drop me an email and let me know what you think.

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A citizen for instance has freedom of movement. But this does not mean that he should drive his car right into President’s bedroom. That is a ride to prison.

So you can see that there are limits to human freedom -- those rights have to operate within confines of rule of law.

A man who disobeys laws of State is in effect challenging authority of that State -- sovereignty, which means right to rule. Now, when Adam and Eve decided to eat forbidden fruit in exercise of their free will after being deceived to do so by Satan, they were in effect challenging God’s legal right to rule. They were effectively saying to God: “We can tell good from bad. It is better for us to be independent of you. We can rule ourselves without you.”

That was an affront -- a rebellion against their Creator. So God has allowed man past 6,000 years to see if he can do without his creator. In those years, man has tried every political and economic system. And result?

Helmut Schmidt, former German Chancellor tells us: “We humans . . . have always only partially governed world, and most of time very badly . . . . We have never governed it in total peace”. Do you agree with him? With all man’s best efforts, do we have peace or pieces of peace? (I am not playing with words.)

But how are we children of Adam and Eve who didn’t have a bite at this fruit, concerned in this matter?

It is because of law of genetics. When our first parents disobeyed, they became sinners -- imperfect people. And imperfect parents cannot give birth to perfect children. So we have all inherited result of sin -- suffering and death from Adam and Eve.

Here comes questions: why did God plant a forbidden tree in garden? Did he know or not that Adam and Eve would eat fruit? Why did he allow Satan to deceive them? Why did he not destroy sinning trio? And who made Satan Devil in first place? Questions. Questions. Questions.

The answers to these questions in next installment will surprise you as we consider consequences of rebellion. (To be continued)

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ARTHUR ZULU, The Most Controversial Writer in World, presents above article as an example of topics that make best-sellers. If you want to write a best-seller, download a copy and free excerpt of his best – selling book, HOW TO WRITE A BEST-SELLER at : http://www.1stbooks.com/bookview/10975 For FREE writing helps, mailto: controversialwriter@yahoo.com

ARTHUR ZULU, The Most Controversial Writer in the World, is the author of the best - selling book, HOW TO WRITE A BEST-SELLER.