Home – New Forums Starting your journey Company or sole trader Reply To: Company or sole trader

#1209585
CoryBee
Member
  • Total posts: 25
Up
0
::

G’day Mr. Sparky,

Like you, I’ve jumped ship from traditional employment and also started my own electrical business here in Sydney. Congratulations and goodluck!

In terms of business structure, I set up a company for the reason you mentioned – to remove the liability from myself to the company. In terms of a trust, I know little about it to comment but if it’s required down the track, it’s easy enough for an accountant to set up.

In terms of start up funds, I bought some power tools and hand tools I needed ($2.5k), material stock (GPOs, switches, cable, plug bases, etc) to keep in the van (~$2k), a new van (outlaid a $7k deposit to keep some cash on hand), Logo, branding & business cards (~$700), Company registration (~$1000), company contractor license ($1000) and some test equipment (~$2.5k).

You may already be better set up than I was as I moved from estimating for a year to back on the tools in my own business. You can always set the business up and remain an employee for a few extra months while you save some cash for your own equipment. In saying that though – it’d probably be a waste to set the company up then work for someone else and still have to fill out quarterly BAS.

Also, two best bits of advice I can give is listen to the tradies business show podcast and also subscribe to an online accounting software (ie. Xero or Quickbooks) and maybe subscribe to IQBoxy to save your receipts too!

Let me know if you have any further questions :)
Cory