Including registration with ASIC and optional registration for a Tax File Number and/or GST
Unless you are in a 'high risk industry' (read on!), being a sole trader is a great low-cost option when you first start out in business. But as your business grows, there are significant legal (and for many people, taxation) advantages to operating your business in a Company with a family Trust as the sole Shareholder.
From a legal perspective, if you continue to trade as a sole trader, you could be at risk of losing any assets owned in your name if you are sued or are unable to pay your bills. Creating and using a company to own and operate your business moves this potential liability to the company instead. Of course, if you are required to give personal guarantees (for example, pursuant to a lease or to a supplier), you may still have personal risk. We strongly recommend that you seek advice from our leading business lawyers before giving any personal guarantee or entering into any high-liability arrangement.
Creating a Company and family Trust involves the upfront cost of this ELBizDocs product, as well as ongoing accounting costs. If your business is not yet making much money, it might not make financial sense to upgrade to a Company and Trust structure just yet. However, you should keep in mind that when you are ready to transfer the business to the new company, you will be required to pay stamp duty on the value of any business assets (including goodwill). As such, you don't want to wait until your business is worth thousands of dollars and you will be lumped with a considerable stamp duty bill! The exact timing is usually a matter to be discussed with your accountant.
Before you proceed with ordering a new ELBizDocs Company and family Trust, we strongly recommend that you first:
If you purchase this New Company + New Trust Creation ELBizDoc, you will receive:
Contact us first before purchasing this ELBizDoc if any of the following apply:
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