A Reliable Team of Business Accountants in Sydney
Starting your own business can be exciting but also daunting. For business taxation assistance,
speak to our accountants.
Most businesses prefer operating in a formal structure that provides access to different tax savings plans & strategies and corporate protection in terms of debts and action consequences liabilities.
Choosing the right business structure is not always an easy decision. Our certified team of business accountants in Sydney is here to help you out.
There is a preconceived notion of prestige associated with the incorporated company. However, the truth is that you are nevertheless exposed, e.g., your company profile and state of financial health are reported openly to the public.
An incorporated company has its legal entity that can enter into contracts in its name and terms. The fact that a company operates under another separate legal entity from its owner is crucial. Because it means that all shareholders get protection under the incorporate veil, all shareholders are not liable for the actions and debts of the incorporated company.
- E.g. The ‘Incorporate veil’ can be penetrated when a director offers a bank or other creditor a personal guarantee to repay the company's debt. Consequently that particular individual director will be personally liable to repay the debt.
- Limited liabilities – The company is a separate legal entity which acts as a veil to protect your personal assets from business creditors when the company is liable to its debts and has ceased to operate.
- As discussed before, business structure of company is more of a secure protection to business owners.
- Presentation – the business coveys a more professional image to investors and clients.
- Tax in business– the business structure as an incorporated company is tax-effective; however, this also depends on the average turnover rate. The higher amount of the income, the more Tax Savings a company can have.
- Expensive – the company structure is costly to set up, including its maintenance and winding up, and the reporting requirements are complicated concerning the ATO rules.
- Companies must prepare their accounts along with other documents in public record and lodge with ATO, and therefore companies have more to present to the public than unincorporated businesses.
- The directors or shareholders cannot use any losses generated by the company, and all profits distributed are taxable.
- Directors may be held personally liable for company’s debt if failing to meet legal obligations.
Our licensed business accountants in Sydney would love to discuss your requirements. Also, we would undertake a thorough assessment of risk and business features to help you choose the best business structure. Whether you would like to proceed with a proprietary limited company or an unincorporated business, we will assess your circumstances. Moving ahead, plan a beneficial tax arrangement that suits you the best and help you make a sensible choice in minimising risks and increasing Tax Savings.
Schedule a consultation with our business accountants in Sydney for professional advice.
Give us a call at (02) 8318 1545