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  • #997340
    Gustmd733
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    Hello I am new here to ask some question to run business and a second one in future.

    Currently I am running a one business (pty ltd). And we barely make profit on business account. Costs to rent and other fees have rased increasingly high this year.

    So I am thinking about running second. All my incomes are from first company by TAX. I want to know if I need to pay tax if the second business is ABN registered which will make profit less than 50k a year.

    #1211591
    Rowan@quaotic
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    My first thought is – would you advise a couple to have a child to try and save their failing marriage? Of course not, that has always been bad advice even though many couples try it.

    I suggest you work on your current business and do what you can to fix it, or at least identify what has gone wrong before you even consider trying to start a second one to fix the problems of the first.
    Or am I reading your question wrong?

    #1211592
    Gustmd733
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    Rowan @ GardenLarder, post: 252610, member: 28171 wrote:
    My first thought is – would you advise a couple to have a child to try and save their failing marriage? Of course not, that has always been bad advice even though many couples try it.

    I suggest you work on your current business and do what you can to fix it, or at least identify what has gone wrong before you even consider trying to start a second one to fix the problems of the first.
    Or am I reading your question wrong?

    Thank you for reply. Everything is already settled for first business. But we don’ make profit a lot. I just wanna do a second for pocket money. Regarding to tax I wonder if I need to pay more if I do the second as Abn.

    #1211593
    Paul – FS Concierge
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    Hi and welcome to Flying Solo [USER=101208]@Gustmd733[/USER] – I hope that you find the answers you are looking for.

    #1211594
    heftzwecke
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    The answers are not really encouraging. Two questions: will your first business make money in the future? How will you achieve that? If then why would you start a second one? Would you give up on your first one and THEN start a second one (that was more than two questions).

    #1211595
    Precise Tax Solutions
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    Each company/business will be liable to pay tax separately (assuming you set up the second as a company, and it is actually profitable).

    Cheers

    #1211596
    Ross Forrester
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    You can run two businesses in the same company. And you can have a separate ABN for each business.

    So if your first business loses money the tax loss can be allocated against the profit in the second business.

    And you will only need to prepare the one set of financial reports and one tax return.

    If the second business is a hobby you do not need to pay tax on it or run it through a company.

    #1211597
    bb1
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    Ross Forrester, post: 252641, member: 101125 wrote:
    If the second business is a hobby you do not need to pay tax on it or run it through a company.

    If it’s a business it can’t be a hobby

    #1211598
    Ross Forrester
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    bb1, post: 252644, member: 53375 wrote:
    If it’s a business it can’t be a hobby
    True. But some people’s business – when you actually dig into it – are actually hobby’s that make a bit of money as a result.

    https://www.ato.gov.au/Business/Starting-your-own-business/Before-you-get-started/Are-you-in-business-/

    I just thought it was worth raising.

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