Opening a New Business
Setting up a business should be easy, right? All you need is an Australian Business Number and you’re ready to go. In reality, an ABN will get you going but this is just the beginning. The larger and more successful your business becomes, the more compliance and tax issues you’ll face. You should plan for success long before you start trading, and ensure you minimise your tax burden from the outset.
Decisions you make today when setting up your business may have long-term financial consequences for your asset exposure, personal liability and taxation on profits. That’s why we at Business Tax & Money House recommend that you consult with us to plan your business structure for optimum benefit to you.
An optimised business structure is essential for:
- Growing your business
- Taking on new partners or investors
- Business succession
- Unlikely and undesired bankruptcy
- Profit distributions and taxation
- Costs of annual compliance work
- Selling your business
An optimised business structure can protect you and your assets from liability if things go wrong, and offer you tax benefits so you can take advantage of the good times. It is very important that you put a robust business structure in place from the beginning, but don’t worry; you can restructure your business at any time. However, the restructure of an existing business may have tax implications.
Five key business structures:
- Sole Trader: Simplest, as all you need is an Australian Business Number.
- Partnership: Two or more people working together, full exposure, joint liability, transparent entity.
- Company: A separate legal entity, providing certainty for planning, with asset protection benefits.
- Trust: Tax planning and asset protection benefits.
- SMSF: Not really used to run a business, but may be able to provide support to some extent if the strategy is well planned.
If you are a director of more than one entity but all have similar needs, there is opportunity for amortisation and enhanced taxation benefits.
Please contact us before you start your business activities and together we’ll plan the best structure for your business, taking into account your current budget and future requirements. We’ll also guide you as to what you’ll need to do for compliance so your business can run efficiently and within the law.
Insurance and other important considerations
- Workers Compensation insurance: Crucial (and mandatory) if you employ other people.
- Public Liability insurance: Mandatory if you interact with the public in a physical space.
- Product Insurance: If you manufacture products.
- Accounting and record-keeping requirements for your business.
Business start-up program
If you choose our business start-up program, we’ll not only set up your new business but also give you FREE1 (or very low-cost) training. You’ll have peace of mind knowing that we guarantee all our work. Your business will be structured for current circumstances and any future eventualities.
Call us on +61 2 8064 3587 and let us help you structure your new business or email us to find out how we can help with your new business. Don’t be afraid to start business.
Remember, all our clients are entitled to a FREE tax review.
1 Conditions apply