In the next 10 years we will face a global economic issue as many small business owners will decide to retire. Many of these business owners do not have a succession plan or understand that they can sell their business to someone else. This means that many amazing, profitable small businesses will disappear! BizON is here to solve this predicament and give every individual a viable option to sell their business or buy an existing business that is suitable to their lifestyle. No matter what the reason may be, having your business live on rather than closing up shop is great for the economy for 8 reasons:
1. Provides buyers with easier financing options, since there are established financial results –this can reduce stress and enable the buyer to continue operations, hence maintaining and/or increasing the tax bases, such as sales taxes and payroll taxes.
2. Helps the seller avoid bankruptcy and perhaps take advantage of the $800,000 small business capital gains exemption if the shares are sold – once again this can reduce stress and economic debt and gives the seller more disposal income in which to purchase goods and services within the economy.
3. Ensures that there is no loss in employment – increases employment and adds to CPP, EI and collection of “personal” income taxes.
4. Increases entrepreneurship – creating innovative, competitive markets to ensure the best products and services for consumers are always maintained and enhanced.
5. Boosts the “local” municipal tax base – example property taxes.
6. Increases the collection of corporate income tax (if incorporated) – the increase in corporate income tax will help governments reduce their deficits and therefore make the economy grow.
7. Increases the likelihood for further research and development – through tax credit initiatives (R&D Tax Credits), it can enhance the Canadian government’s ability to attract further investment in foreign Canadian based entities.
8. Can attract further investment in capital expenditures – this can attract more businesses locally and throughout Canada.
From The Desk of BizON
*This is a reblog of Nunzio Presta’s publication on LinkedIn. To view the original document please click here.