AL & Co Accountants PL T/A BTACS Brisbane | Brisbane Accountants and Tax Agents
Business Structure Packages
Consider your trading structure
- If you are a business owner, have you taken time to consider whether your current trading structure is still right for you?
- If you are looking to start a business, the most important decisions you will make is choosing the right legal structure.
AL & Co Accountants can discuss with you the different types of business structures pointing out the advantages and disadvantages of each so that you can make an informed decision for your business.
We can advise of the Tax Implications (Income Tax, FBT and CGT) of each structure but importantly we can also discuss with you the Asset Protection issues related to each structure.
Other factors to consider includes:
- Start up costs and ongoing costs
- Succession planning
- Ease of understanding and ability to comply.
Further we would also recommend what other asset protection measures you need to consider in regard to your personal assets. There are a variety of ways to protect assets, some of which are more complex than others and subsequently cost more. It is important however to ensure that assets are in as protected an environment as possible.
Structure Packages:
Trust only
• Initial advice – 1/2 hour Advice on suitability for Tax and Asset Protection & to take instructions
• Preparation of the Trust
• Registration of ABN, TFN, GST, PAYGW, FTC etc
• Second meeting to deliver and sign off on documentation & answer any queries
Company only
• Initial advice – 1/2 hour Advice on suitability for Tax and Asset Protection & to take instructions
• Preparation and Registration of the Company with ASIC
• Registration of ABN, TFN, GST, PAYGW, FTC etc
• Second meeting to deliver and sign off on documentation & answer any queries
Trust with Corporate Trustee
• Initial advice – 1/2 hour Advice on suitability for Tax and Asset Protection & to take instructions
• Preparation and Registration of the Company with ASIC
• Preparation of the Trust
• Registration of ABN, TFN, GST, PAYGW, FTC etc
• Second meeting to deliver and sign off on documentation & answer any queries
Brisbane Accountants and Tax Agents
Types of Business Structures
Sole trader
A sole trader is the simplest business structure. The structure is inexpensive to set up because there are few legal and tax formalities. If you operate your business as a sole trader, you trade on your own and control and manage the business. You are legally responsible for all aspects of the business – debts and losses cannot be shared.
Partnership
For tax purposes, a partnership is an association of people who carry on a business as partners or receive income jointly. A partnership is relatively inexpensive to set up and operate. A formal partnership agreement is common, but not essential. If you operate your business as a partnership, control or management of the business is shared. Income and losses are shared among the partners. Each partner is responsible for the debts of the partnership, even if you did not directly incur or cause the debt.
Company
An incorporated company is a distinct legal entity, regulated by the Australian Securities & Investments Commission (ASIC). A company is a complex business structure, with higher set-up costs and administrative costs because of additional reporting requirements.
Trust
A trust is an obligation imposed on a person – a trustee – to hold property or assets (such as business assets) for the benefit of others. These others are known as beneficiaries. Setting up a trust can be expensive, as a formal deed is required and there are formal yearly administrative tasks for the trustee to undertake. A trust deed outlines how the trust is to operate.
How can we help:
AL & Co Accountants can discuss with you the different types of business structures pointing out the advantages and disadvantages of each so that you can make an informed decision for your business.
We can advise of the Tax Implications (Income Tax, FBT and CGT) of each structure but importantly we can also discuss with you the Asset Protection issues related to each structure.
Other factors to consider includes:
- Start up costs and ongoing costs
- Who are your customers
- Employee or subcontractor
- Consider a business and marketing plan
- Estimate your expenses
- Complete a cash flow analysis
- Apply for the required registrations and licences
- If you need a business name apply for registration
- Decide on a computer accounts package
- Understand your tax obligations
- Ease of understanding and ability to comply
- Succession planning
