Are you thinking of changing from sole trader to a company?
Business Tax Update│February 2018
As your business develops you may need to adapt to changing needs. One common change is moving from a sole trader to a company business structure.
Company vs sole trader: what’s the difference?
Understanding the key differences between these two structures is important as it can affect how you run your business.
Tip!
Speak to your us to discuss your options and tax obligations.
Our Did-You-Know List:
- Do you know as a company director you may also have potential personal liabilities for the tax withheld on employee wages and super payments?
- Do you know that different tax rates apply for a sole trader compared to a company?
- Do you know that as a company director you need to lodge two income tax returns – your individual tax return and a company tax return?
- Do you know that you don’t have to become a company to employ people – you can employ staff under either structure?
- Do you know that sole trader business structures have the fewest compliance costs and lowest volume of paperwork? Other structures, such as a company, have more paperwork and ongoing costs.
- Do you know that as a company director, even if you are not hands-on (e.g. a silent director) and/or you later leave the company, you are still responsible and liable for the period you were a director?
- As a company director, do you know what your obligations are to the company, its members (owners) and any creditors?
- Do you know that a company must have at least one person who is over the age of 18 and resides in Australia to act as a director?
- Do you know your legal obligations and the difference between being a company director and a company member?
- If you are running a company, do you know what to do if things go wrong, such as getting into financial difficulties?
- Do you know how to update ASIC when certain details regarding the running of your company change?
- If you want to resign as a company director, do you know what you need to do?
Tip!
The ASIC website provides a wealth of information about changing your business structure and what your responsibilities and potential liabilities might be.
For more information or to schedule an appointment, please contact us below or call us on 1300 627 829
Source: TaxWise 2018
