Home – New Forums Starting your journey Business Structure Options for Outbound Tour Operator

  • This topic is empty.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • #990792
    gs60wa
    Member
    • Total posts: 1
    Up
    0
    ::

    Hi everyone … I am new to the forum so thank you in advance for your patience :)

    I am looking for initial advice on company structures and recommendations on a good accountant in Perth who specializes in Small Business in the Travel sector.

    My current accountant (a large firm) is providing two different opinions which is confusing given they can’t reach a consensus.

    One recommends a straight Pty Ltd company structure (equal number of ordinary shares for my wife and I) and the other to set the business up to operate as a company as trustee for a discretionary family trust. Cost is one consideration where a straight Pty Ltd setup via ecompanies is $557 the trust setup etc is $2,640

    Here is my business scenario for background :

    The business my wife and I are starting is a US Motorcycle Touring company taking customers to the USA to ride Harley Davidson’s across the USA for a month each tour. I need to be fully operational by approx the April timeframe so that I can start taking bookings for next years ride season in the US. Our company will be an outbound tour operator and wholesaler to an Australian Travel Agency who will in effect “sell” our companies product on their paper which negates the requirements for me to have an IATA travel agency accreditation as we will be a full service tour provider inc airfares. ie: I will invoice our travel agent partner for the land content, they take a commission and manage the transaction with our clients including foreign exchange including airfares etc.

    My target for the first USA tour is July 2016 and I estimate our turnover in the FY 2016/17 to be approx AU$700,000. I am trying to keep entry costs at a minimum so if the 2nd structure is desirable can I change to that once the business is operational ? I will stay employed withnmy current employer until July 1 2017 as I have long service due next year which allows me to “test the product” as such without the financial pressure or need to draw an income.

    Thanks for your replies in advance.

    Regards

    Greg

    #1178619
    Anonymous
    Guest
    • Total posts: 11,464
    Up
    0
    ::

    Hi Greg, and welcome,

    That sounds like a fun game to be in :)

    You may find that accountants and legal experts are only able to provide general advice in a forum such as this one, but nevertheless, I hope that someone will drop by and give you some initial thoughts.

    Good luck for your new venture,
    Jayne

    #1178620
    NickKaro
    Member
    • Total posts: 226
    Up
    0
    ::

    Hi Greg

    Whilst not based in Perth, I would be happy to assist. I run a boutique law and accounting firm based in Melbourne but work remotely with a number of clients.

    Firstly, I settle trusts for considerably cheaper, even where customisation is required and including discussion time. Separately, my recommendation will likely be neither structure proposed, but I’ll need some further background to conclude on the optimal structure and explain why.

    Feel free to get in contact ([email protected] / 0401 154 313) if you would like to discuss.

    Regards
    Nick

Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.