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  • #1000394
    andy24sydney
    Member
    • Total posts: 2

    Hi all,

    I’m new to this forum so please be nice :)
    My spouse has started a new business that I have predominantly funded myself (75%) to get up and running. When she registered the business with the ATO it was done as sole trader and only with her name on the business. I obviously want to be included as part owner of the business but how do we now go about doing it?
    What tax implications are there if i am working a separate full time job?
    I am not wanting to get onto the business to earn a salary more to add security to this investment.
    Any help/suggestions would be greatly appreciated
    Many thanks
    A

    #1224195
    JacquiPryor
    Member
    • Total posts: 2,344

    Hi Andy – cannot say anything about the tax implications etc (you may need to speak to an accountant about that), but, to be ‘named’ as part owner you will need to have a different structure.

    A sole trader implies it is a single person operating/owing the business. From your post it sounds like you may need to look into a partnership structure. This would mean you are both seen as partners in the business; you would get an ABN for the partnership and transfer the business name from her sole trader ownership to partnership. You would want a good partnership agreement that discusses each person’s responsibilities, obligations etc. Even thought it is with your spouse, a partnership agreement is a good idea.

    I think for your circumstances a chat with a lawyer who can help with the agreement and an accountant who can go over the tax and financial side is probably worth while.

    All the best :)

    #1224196
    andy24sydney
    Member
    • Total posts: 2
    JacquiPryor, post: 271029, member: 20176 wrote:
    Hi Andy – cannot say anything about the tax implications etc (you may need to speak to an accountant about that), but, to be ‘named’ as part owner you will need to have a different structure.

    A sole trader implies it is a single person operating/owing the business. From your post it sounds like you may need to look into a partnership structure. This would mean you are both seen as partners in the business; you would get an ABN for the partnership and transfer the business name from her sole trader ownership to partnership. You would want a good partnership agreement that discusses each person’s responsibilities, obligations etc. Even thought it is with your spouse, a partnership agreement is a good idea.

    I think for your circumstances a chat with a lawyer who can help with the agreement and an accountant who can go over the tax and financial side is probably worth while.

    All the best :)

    Thanks for the feedback and quick response Jacqui.
    I will certainly look into both of your points.
    Thanks again

    #1224197
    businesstrade
    Participant
    • Total posts: 210

    As far as general information goes, a sole trader is mainly for individuals running a business. It is commonly used for single operator businesses, subcontractors, and freelancers.

    For someone looking to partner with another person, setting up a company or partnership are options but each comes with their own set of costs, liabilities, and tax implications. This is why it is important to speak to a professional.

    You’ll need to speak to your accountant in terms of structuring the right entity regarding tax and liability.

    https://www.businesstrade.com.au/basic-business-structures-explained-australia/

    #1224198
    UmarBatchelor
    Member
    • Total posts: 26

    Generally you dont pay additional tax just by being an owner of a business. However the tax you pay or the losses you can claim from the business depends on the structure and nature of the business. Best to connect with a good accountant.

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