Home Forums Money matters Register Company Myself or See Accountant?

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  • #992971
    TheAshes
    Member
    • Total posts: 8

    Hi all,

    I have a simple question, but want to know if I have overseen anything important in my reasoning. I am wanting to register a company and have spoken to a few people who have done it through accountants, I have spoken to my accountant, and have honestly come to this conclusion.

    Do it through an accountant (~$1100)
    – They do it through ClearDocs
    – Add their fee on top (for ABN? Binding?)
    – Only benefit I see is that they will understand the structure if I stay with them for company tax returns

    Myself (~$600)
    – A lot cheaper, I can do it through ClearDocs myself
    – I can do the ABN registration myself
    – If I set up my structure well enough and document it, I could just hand it over to an accountant when tax time comes?

    Have I missed anything?

    Thanks in advance!

    #1189054
    NickKaro
    Member
    • Total posts: 226

    Good afternoon

    As an advisor, the benefit is in any advice surrounding the structure (holding shares personally/is it the right structure, etc.) and ability to answer questions as part of the set-up process is where the value is added.

    Agree if the difference is between you setting up a Co through an online medium vs the advisor doing it with no value-add AND you know what you’re doing, it makes no sense to pay any extra.

    Regards
    Nick

    #1189055
    Taxopia
    Member
    • Total posts: 301
    TheAshes, post: 221835, member: 69762 wrote:
    Hi all,

    I have a simple question, but want to know if I have overseen anything important in my reasoning. I am wanting to register a company and have spoken to a few people who have done it through accountants, I have spoken to my accountant, and have honestly come to this conclusion.

    Do it through an accountant (~$1100)
    – They do it through ClearDocs
    – Add their fee on top (for ABN? Binding?)
    – Only benefit I see is that they will understand the structure if I stay with them for company tax returns

    Myself (~$600)
    – A lot cheaper, I can do it through ClearDocs myself
    – I can do the ABN registration myself
    – If I set up my structure well enough and document it, I could just hand it over to an accountant when tax time comes?

    Have I missed anything?

    Thanks in advance!

    It really depends on how confident you are with the TFN / ABN / GST registration process and how confident you are that you have got the company structure right. There is a significant body of law to these matters and online forms can over simplify the issues somewhat.

    #1189056
    MyGreatIdea
    Member
    • Total posts: 2,278

    I used Shelcom (they’re a member here) and it was around $600, done in a day, and I did nothing :)

    My only advice would be so speak with your accountant FIRST to make sure the company structure is the best way for you, not just because you’ve decided you “want to”.

    Wendy :)

    #1189057
    Taxopia
    Member
    • Total posts: 301

    Hey Wendy the only problem with that approach is that it is essentially asking an accountant to provide free advice for no return which they may also have a professional liability exposure for. Perhaps a more reasonable approach would be to either pay for the professional (insured) advice or do DIY and assume your own risk.

    #1189058
    TheAshes
    Member
    • Total posts: 8

    Thanks everyone – I really appreciate the help!

    #1189059
    bb1
    Participant
    • Total posts: 4,485
    MrTax, post: 221871, member: 68601 wrote:
    Hey Wendy the only problem with that approach is that it is essentially asking an accountant to provide free advice for no return which they may also have a professional liability exposure for. Perhaps a more reasonable approach would be to either pay for the professional (insured) advice or do DIY and assume your own risk.
    I would have thought a good accountant wouldn’t mind giving a bit of free advise, isn’t that could customer relations,
    #1189060
    alliedib
    Member
    • Total posts: 453
    bb1, post: 221915, member: 53375 wrote:
    I would have thought a good accountant wouldn’t mind giving a bit of free advise, isn’t that could customer relations,

    They may do, but there may be a limit as to what is incidental general advice and what is proper advice (just like on here) – after all a chat for a few minutes about different structures is a lot different to the accountant working out the best way to structure the entities (especially if trusts etc are involved) – and when the accountant says ABC and the OP does ABD, then who is responsible for the error (especially if the OP thought the accountant said ABD)?

    I have no issue with DIY anything – people just need to understand that in the event something goes wrong the person that decided to DIY is the one that is in the firing line…

    Regards,

    Mark

    #1189061
    NickKaro
    Member
    • Total posts: 226

    Completely agree Mark – some advice is free (as on here) and specific, catered advice that uses our time should be paid for, like any other service provider.

    Regarding DIY, my personal view is that, if you know what you are doing – go for it.
    Similar to any other job – if you are confident in fixing your car, buy the parts and spend the time. If not, see a professional.

    From a professional advisor perspective, I have seen DIY errors costing clients hundreds of thousands so the safer bet if you are not well versed in tax law, structuring, etc. is to see someone.

    Regards
    Nick

    #1189062
    BradTurville
    Member
    • Total posts: 55

    Hey there, the question you need to ask yourself is if you are 100% confident that you understand the setup process, how to properly structure and whether a company is the best entity then go for it.

    But as an expert in this space I’d strongly suggest speaking to your accountant and have them establish. Questions like whether the best avenue is company or trust. If trust, discretionary or unit. If company, who is director(s) and who is shareholder(s). Should the shareholder be a discretionary trust? Will you be applying for R&D concessions? Will you require 50% CGT in the future (which doesn’t apply to companies) etc etc etc.

    I believe that you pay now or you pay later. Meaning in the long run you may end up paying a lot more (in cash and in stress). I’ve restructured numerous businesses that were originally setup by the owner and resulted in unnecessary cashflow problems, asset protection issues, limited flexibility around minimising tax and the capital gains tax and stamp duty consequences of the restructure.

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