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  • #988093
    Stephen Shell
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    Hi everybody

    Im in process of starting up security business(security guarding/crowd control).
    Business would have turn over $100K+ in the first year with the possibility to grow in future as I will have 2 contracts to start with, 2-3 guards working including myself. I would have public liability insurance.

    Which business structure would be the best and why:

    Sole trader, Company or Trust?

    #1165573
    alliedib
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    Hi Stephen,

    Check your contracts as they may stipulate a particular structure (I know some establishments will only deal with companies).

    As for the benefits financially and asset-wise, there are more knowledgeable on here than myself. I do know, however, that in most states working directors of Pty Ltds are eligible for protection under Workers Comp. This could be more advantageous than being a sole trader because, as a sole trader, you can’t get cover for yourself under Workers Comp. You would need to obtain cover for income protection – something where acceptance is at the mercy of the insurers (at least with Workers Comp you can be guaranteed to obtain cover).

    Good luck with it and if you need any help with your insurances, feel free to give me a call – I have a couple of insurers with policies specifically designed for the security industry that may be of interest to you.

    Regards,

    Mark

    #1165574
    Anonymous
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    Hi Stephen,

    Mark has given you some initial ideas to consider, and I suspect one of our resident accounting experts will also have some contributions to make to this discussion too, so stay tuned.

    In the meantime, welcome to Flying Solo, and good luck with your new venture.

    Jayne

    #1165575
    MissSassy
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    Chances are that a Company will probably be the structure but you need to speak with an accountant so they can take all your personal circumstances into consideration too.

    #1165576
    Stephen Shell
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    I heard that Pty Ltd is more suitable if you making big money, like 200k+.
    My business turnover will be about $140k in the first year and it might grow IF I get new contracts.

    http://www.shelcom.com.au business tool set up suggested Sole Trader

    Most people suggest to see an accountant, but it is possible that 3 different accountants will have 3 different opinions as to what structure to use.
    I would like to see one but will they charge me for first session?

    Somebody said how some businesses don’t deal unless you are company, this clients are not fussed.

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