Business Setup
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We at Auditax can help you choose a structure for your business that suits your business needs and also set up the same for you.
- Auditax helps you ascertain whether a license is required for your business and also assists you with complying with the licensing requirements.
- Our professionals provide you guidance regarding the taxes and lodgement of annual tax returns.
- You can get your business names registered with our help.
- Based on the kind of business structure that you finalize; we advise you regarding the payment of salaries and wages to the employees and the applicability of Pay As You Go (PAYG) taxes.
- We assist you with setting up initial administration including HR policy and employment agreement.
- Our team helps you understand the treatment of profits and losses of the business and ascertainment of liabilities and assets of the business.
All these activities require a careful analysis that we carry out for you. Apart from this, you can also trust us with the paperwork as we file the required documents with the concerned authorities on your behalf.
Business Setup
Are you planning to start a new business? Setting up a new business unit is an exciting opportunity for all but the process also comes along with a lot of challenges. You need not worry as the Auditax team is here to guide you through all the aspects of business set-up as well as management.
If you are planning to set up a business then here is a general guide that you must refer to before you set up your business:
- You should ensure that you are ready for the business so that you give your soul to it.
- Take major decisions regarding your business regarding its structure, name as well as location.
- Start developing business plans and strategies for building a road map.
- Obtain necessary registrations and licenses for your business.
- Have a general understanding of the taxation laws concerning your business.
- Get to know what all laws will apply to your business.
- Decide how your business is going to finance its operations.
- Keep your business name and other intellectual rights protected.
Start deciding your business operations such as staff selection, vendor selection, sales marketing, and so on.
If you are confused about why it is a good idea to start your own business, then you can refer to the following discussion. It is going to give you the much-needed motivation for setting up your own business.
Advantages of Setting Up A Business
- If you are a skilled person then why not use those skills for your own business. It will give you freedom of work and the results will be much better. It is true that when you are set free to work you create better!
- Owning a business will mean that you are your own boss and can take decisions independently without being answerable to anyone. This means that you are free to choose your vendors, work style, strategies, and even staff.
- You get a source of income that not only runs your household but also makes you financially independent.
- When your business grows, it brings you goodwill and you build a brand to which the audiences relate.
Now that we have seen why you must aspire to start your own business, let us understand what are the various business structures that you may adopt for your business.
Factors Affecting Consideration of a Business Structure
Deciding the structure of the business involves a consideration of several facts. The structure of the business depends on several factors such as
- Type and nature of business
- Size of the business
- Plans for future expansion and diversification
- Who will run the business and how it is to be run?
- Costs of setting up a business
- Tax liabilities
- Employment expenses, and so on.
Choosing the business structure may sound complicated since setting up a business involves a lot of decision making and paperwork. That is why it is advisable to seek professional help from certified accountants and financial analysts.
Sole Trader
If you plan to set up a sole trader business, then you must consider the following facts about a sole trader business:
- Complete control over the business assets and decisions lies with the sole trader.
- It is a relatively simpler form of business whose formation requires less paperwork and formalities.
- You can file your individual tax file number to file your tax return.
- Regarding the bank account, you are free to choose between opening a separate business bank account to keep track of cash inflows and outflows or you can continue to use your personal bank account.
- The most important feature in the sole trader structure is that the owner incurs unlimited liability. This means that the owner’s personal assets can be utilized to settle business liabilities.
Auditax has a team of experienced tax accountants and financial analysts that can help you calculate taxes payable on your business income and lodge your income tax return. We make sure that you don’t have to spend a penny on penalties. Maintaining business records is a must and we help you maintain your records for 5 years.
Partnership
Two or more people can set up a partnership business where they contribute to the capital and distribute the profits and losses among themselves based on the profit-sharing ratio.
There are three types of partnerships that you might consider:
- General partnership (GP)
- Limited partnership (LP)
- Incorporated Limited Partnership (ILP).
Here are some factors that you might need to take care while forming a partnership form of business:
- Partnership requires separate tax file numbers (TFN).
- Profit-sharing is an important consideration in the setting up of a partnership. It is usually arrived at after considering the capital contributions done by the partners.
- A partnership tax return needs to be filed annually with the ATO.
- If the turnover of the partnership business is $75,000 or more, then you are required to obtain GST registration.
Our professionals can help you secure TFN and other necessary registrations such as ABN and GST without any hassle. Partners need to consider the income that they earn from the partnership to calculate their final tax liability and we can help you with the finalization of tax returns of all partners. You can take our help for the formation of superannuation arrangements based on which the partners will be required to pay their own superannuation.
Company
Following are some factors that you need to consider while forming a company form of business:
- Set up cost is relatively higher than other forms of businesses.
- It requires you to comprehend and fulfil all commitments under the Corporations Act 2001.
- Although business activities are conducted by the directors, the business is owned by the shareholders.
- Company members have limited liability and their personal assets can’t be attached for payment of business liabilities.
- An annual company tax return is to be lodged with the ATO after considering the various tax incentives available to the company.
- Declaration of solvency is required to be filed by all the directors.
- A company needs to register itself for GST.
Complicated business structures require professional solutions. Auditax helps you register your company and comply with the various requirements under different laws like Corporation Act 2001 and GST. You can file your company tax returns with us as we help you minimize your tax liability within the legal framework.
Trust
Trust is a structure that works for the benefit of others and here are some key facts relating to trusts:
- It is the most expensive business structure as the set-up costs are high and various legal formalities are required to be complied with.
- A trust deed is to be formed which contains the details about the operation of the trust.
- Trustees are to be appointed who are responsible for protecting the assets of the trust.
We have partnered up with legal service providers as well to finalise the trust deed that serves as a basis for the operation of the trust. Also, we can help you appoint trustees for your trust.
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