- Advertisement -spot_img
18.3 C
Logan City
HomeUncategorizedBusiness Setup

Business Setup

- Advertisement -spot_img

By Monica Shaw, Director Ashawed Accounting

Many people start out their business journey as a sole trader. This isn’t always the best structure depending on your business goals. Over the next few editions, I will go through each business entity and the pros and cons.

Sole Trader

– Any profit you make is taxed at your individual tax rate.

– This means if you have other income, the profit from your business is added to the other income and taxed at your marginal rate plus medicare levy.

– Any liability you have is your responsibility. If you are sued then all you assets are at risk as they are part of your personal asset pool.

– Any losses the business makes, needs to meet the loss rules before you can claim the loss against your personal income. Ie wages.

– The cost to set up as a sole trader is low if you are setting up your ABN yourself

Things to consider:

– Do you need to registered for GST? The threshold is $75,000 for a 12 month period.

– Will you be hiring employees or intend to in the future?

– Is the intention of your business to eventually grow and hire staff or just to keep you busy while the children are young?

– Do you have any assets, your home, investment properties or investments?

– What are the start up costs and if you are buying any significant assets?

– Your budget for the business.

Ashawed Accounting
Ph: (07) 3102 1342 | Email: admin@ashawed.com.au
www.ashawedaccounting.com.au

- Advertisement -spot_img
- Local Sponsor -spot_img
- Local Sponsor -spot_img
Articles of interest
- Advertisement -spot_img

LEAVE A REPLY

Please enter your comment!
Please enter your name here

X