My Experience: Cancer Was the Trigger for Incorporating Web Marketing Business

Starting as a Sole Proprietor in Internet Media

The genesis of our digital marketing services began with me as a sole proprietor in the realm of internet media. Our business fundamentally operates on a performance-based model, earning advertising revenue through consumer purchases. We’ve navigated various sectors including recruitment, finance, telecommunications, and the beauty industry. From launching websites to crafting content and overseeing maintenance, I’ve personally handled all aspects of these operations, a practice that remains unchanged to date.

Within a year of becoming a sole proprietor in 2016, I surpassed the income from my days as an employee. In Japan, it’s uncommon to immediately establish a corporation due to a two-year exemption from consumption tax post-startup. However, there are cases where incorporation becomes necessary for licensing or enhancing credibility.

As a sole proprietor, managing internet media isn’t the only task; it also involves filing tax returns. In the United States, it’s common for even company employees to file tax returns since year-end adjustments aren’t conducted. However, in Japan, companies typically handle year-end adjustments for employees, resulting in most individuals lacking experience with tax filing unless they are high-income earners or self-employed.

It was my first experience as a sole proprietor, and while I didn’t have prior exposure to filing tax returns in Japan, my university studies included preparation for the USCPA (although it’s unrelated to Japan) and past work experience in accounting during my time as an employee. Leveraging that knowledge, I managed to handle tax filing without the reliance on a tax accountant.

Decision to Incorporate Triggered by Cancer

Japan’s income tax adopts a progressive tax system where tax rates increase according to income. Around January 2018, considering corporate status for tax-saving purposes coincided with the escalating revenue from internet media.

However, soon after, I was diagnosed with thyroid cancer. Residing in Tokyo’s Minato ward, I underwent successful surgery at a well-equipped university hospital. Thyroid cancer, particularly at Stage 1, boasts a survival rate as high as over 90%. Over six years later, I’m thriving.

During my hospitalization, contemplating the future prompted the decision to incorporate. Ownership of assets like a website’s rights is complex for sole proprietors, but having them owned by a corporation allows a smoother business succession by inheriting shares to family in case of any unforeseen circumstances.

Established as a Corporation in 2018

Just a week after my discharge, I founded BizMOWA as a corporation on May 25th, 2018. While many Japanese companies finalize their accounts either at the end of March or December, our fiscal year concludes at the end of April. Establishing the corporation required various filings and applications across multiple entities, which, except for engaging a judicial scrivener, I handled independently.

While continuing the internet media operation conducted as a sole proprietor, the incorporation prompted a new venture: digital marketing services. Presently, while managing these operations, I also handle legal obligations such as financial statements, corporate tax filing, and year-end adjustments, all part of running BizMOWA.