Dr Kesha Christie, managing director of KCLH Full Business Solutions, is urging entrepreneurs and business owners to set up the right corporate structure at the onset as this bolsters their overall growth and sets a solid foundation for scalability in the later years.

According to tax expert, “up to 70 per cent of local business owners (in Jamaica) are losing as much as 90 per cent of their revenue due to inefficient tax planning and falling into common tax filing traps because of their business structure.” 

She was speaking at the recent Build Wealth workshop hosted by Bailey Wealth Group (BWG) in partnership with KCLH. 

This insight sheds light on the often-overlooked impact of proper tax planning, particularly within the micro-, small-, and medium-sized enterprise (MSMEs) sector, which accounts for more than 90% of all businesses in Jamaica. Christie noted that this pitfall is especially common among creatives, freelancers, professional service providers and consultants. 

“Most (of these) business owners are unintentionally leaving money behind simply because their business is not structured correctly,” she said. Failing to properly file income through the relevant registered company or panic filing could result in missing out on deductible business expenses and allowances, ultimately increasing tax liability. Christie outlined, “Sole proprietorship and partnerships offer ease of set up, lower registration fees and the administration is straightforward, however I usually advise business owners to opt for limited liability entities from the onset as it offers personal liability protection and facilitates greater separation of personal and business assets, while allowing entreps to benefit from tax allowances, deductions and sets up the framework for scalability and attracting investment.” 

The tax expert dispelled the myth that formalising business entities and establishing the right business structure increases tax liability. She noted that the benefits far outweigh the cons of registering a business with the right business structure; in fact, entrepreneurs and business owners also stand to take advantage of tax-efficient strategies to sustain growth. “When business owners use the right structure and consult with tax professionals, they improve profitability and can reinvest in their businesses while contributing meaningfully to national development.”

She further outlined that a prevalent misconception among business owners is the belief that they should avoid filing taxes during years of loss or inactivity.

Christie countered this notion, highlighting that even in loss-making years, tax strategies—such as carrying forward losses—can significantly reduce future tax liabilities. Filing a nil return, even when there is no activity, is also vital to maintaining compliance and avoiding penalties. “Timely tax filing, with the support of professionals, is essential to steer clear of unnecessary penalties and maintain a valid tax compliance certificate,” she advised.

Central to effective tax planning is accurate documentation and a clear separation between personal and business finances. Christie cautioned that inadequate record-keeping often hinders business owners from claiming eligible deductions—one of the leading causes of lost tax benefits. 

With November being celebrated as National Entrepreneurship Month, Christie’s message is particularly timely. This proactive approach of prioritising setting up the appropriate business structure from the beginning not only safeguards against costly errors later but also paves the way for sustainable scaling.

The Build Wealth workshop held at Courtleigh Hotel, also gave the high network professionals and business owners in attendance, the opportunity to gain in depth insight into investment strategies from Keisha Bailey, head honcho at Bailey Wealth Group (BWG); who shared key wealth building lessons from Hurricane Melissa – diversification of assets, the importance of asset protection and estate planning and long-term goal setting.