Importantly, P.E.O.s also offer business owners opportunity to reduce employment liability exposure. Under this arrangement, a client company transfers many of its employer-related liabilities to P.E.O.. Other liabilities are shared. With those that are left, P.E.O. can provide resources such as safety consultants and human resource specialists to provide back-up needed to further reduce a client companys exposure.

At most sophisticated level, full-service P.E.O.s provide entrepreneurs with other vital employment resources, including productivity-based training courses, an expanding array of online support services, and access to a network of best-of-class service providers that can help them achieve goals more efficiently and effectively.

The result is win-win. Employees value opportunity to grow professionally while business benefits from increased productivity.

Currently, there are over 3,000 P.E.O.s nationwide. Each P.E.O. has something unique to offer their clients. It is a fact that no one P.E.O. could ever hope to fulfill requirements of extensive number of businesses, millions of employees and diversity of their needs. So questions becomes, how do you find right P.E.O. for your personal business needs? After intense research into this subject, a totally new concept has been created for P.E.O. industry. A FREE referral service offered by a professional consultant for all small business owners in United States and Canada.

"Businesses, large and small, have discovered a new way to drastically reduce payroll expenses, limit liability and offer better employee health plans at less cost" states Robert Speer, Executive V.P. of sales and marketing ( Mr. Speer is co-founder of Home Shopping Network) of P.E.O. Brokerage Inc.. We find it is far easier to comply with our clients needs if we're not limiting ourselves to just one P.E.O.. So we developed a P.E.O. network of top 100+ A or AA rated P.E.O.s in nation.

It's now fast, easy and free (not to mention a painless transition and cost effective), to place small businesses of all catagories with a P.E.O. service that can fulfill all of your current needs; state compliance, taxes, insurance, workmans compensation., etc. that will be satisfying to you and your company. As Mr. Speer heads out door to a board meeting, he left us to ponder following quip... Are PEOs reason why your competitors are kicking your tail when it comes to being competitive? It just could be. Think about it...

For your free referral service information, contact: Steve Hartung, consultant. P.E.O. Brokerage Inc.. http://www.saveonpayroll.com (Secure site: use ID: 001025 to enter site.) lowcost@bouldernews.infi.net

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.

You can email me at...

constantinesavva@accamail.com

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