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  • #986634
    umair862
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    • Total posts: 17
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    Dear All,

    I have a software and Mobile App business as a Sole trader. I am thinking to expand it. I met a marketing person who is happy to bring more projects for me.
    I have been thinking about the business structure and other issues and need advise for the following issue.

    1) As I am a sole trader, I want marketing person to be a contractor (Having his own ABN). In this case, If he brings a project to me, he will be treated as my client. He will charge his clients and I will charge him for any work he brings for me. Is there any better solution than this?

    2) He does not have a software development portfolio? Can he use my business name, website and portfolio for Marketing purposes? Is it possible, he uses a business card with my business name written on it with his details listed as a marketing contractor?
    How can we do it in a better way?

    3) If I allow him to use my business name, what if he does something wrong using my business name i.e fraudulently gets funds transferred from a company on my business name using my flyers etc?
    What are legal implications and how can I deal with them?

    I will really appreciate your advise on this.

    Regards,
    Umair

    #1158813
    Ashman
    Member
    • Total posts: 78
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    Firstly, if you’re thinking about expanding your business register it as a company rather than a sole trader.

    Your marketing guy should know how to promote a business. That’s his job right? He does not need access to your business card. He just needs to know what product or service you provide and then using his marketing skills to promote your business.

    If he is unable to do that independantly of you then get a new marketing guy.

    #1158814
    Kennethti
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    • Total posts: 415
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    Perhaps you should put together a contractor agreement so that you can define what you allow him to do and what happens if he doesn’t follow your instructions.

    #1158815
    umair862
    Member
    • Total posts: 17
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    @Ashman

    I am not planning to start a Company at the moment. I need more cash flow before I will be able to start a company.


    @Kennethti

    Thanks for your response on this matter. I have two more questions:

    1- So, a person can do marketing for my business and bring projects for me while having his own ABN number.

    2- What should be the ingredients of a good contractor agreement to save my side legally.

    3-Is there any other legal aspects I should consider? i.e having Indemnity insurance etc.

    I will really appreciate your feedback on this.

    Regards,
    Umair

    #1158816
    TehCamel
    Member
    • Total posts: 873
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    umair862, post: 183128 wrote:
    Dear All,

    I have a software and Mobile App business as a Sole trader. I am thinking to expand it. I met a marketing person who is happy to bring more projects for me.
    I have been thinking about the business structure and other issues and need advise for the following issue.

    1) As I am a sole trader, I want marketing person to be a contractor (Having his own ABN). In this case, If he brings a project to me, he will be treated as my client. He will charge his clients and I will charge him for any work he brings for me. Is there any better solution than this?

    Sound quite reasonable. but he’s not a contractor – he’s a customer. You could also call him a reseller. you might need a reseller agreement in place.

    Quote:
    2) He does not have a software development portfolio? Can he use my business name, website and portfolio for Marketing purposes? Is it possible, he uses a business card with my business name written on it with his details listed as a marketing contractor?
    How can we do it in a better way?

    ok, that might not work so well as a reseller. You might need to employ him as a commission-based sales agent only ?

    Quote:
    3) If I allow him to use my business name, what if he does something wrong using my business name i.e fraudulently gets funds transferred from a company on my business name using my flyers etc?
    What are legal implications and how can I deal with them?

    I will really appreciate your advise on this.

    Regards,
    Umair
    legal agreements in place for all of it.

    #1158817
    TehCamel
    Member
    • Total posts: 873
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    umair862, post: 183258 wrote:
    @Ashman

    I am not planning to start a Company at the moment. I need more cash flow before I will be able to start a company.

    I admit to being a tiny bit confused here.
    You can spool up a company for less than $1000.
    Your accounting fees will be a little higher, yes, but not muchly so.
    there’s no ongoing costs.
    if the company needs money to purchase things (ie, the cashflow issue) then as a director, you loan the company the money.
    it pays you back when it can (before profit is declared, because it’s an expense)

    #1158818
    LucasArthur
    Participant
    • Total posts: 3,171
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    TehCamel, post: 183261 wrote:
    You can spool up a company for less than $1000.

    Yeah,

    Must say i rarely chime in on these sort of comments about waiting for cash flow to register a company as i tend to find the real reason people not wanting to register a company is two fold:
    1. they are a little timid re the process and may not completely understand how it will benefit them and have little impact on costs if done the simplest of ways, or
    2. they are not committed to the business they are in and unsure how it will proceed and if they will stick with it..

    Please Umair, dont take this as something i am saying about you it is just a general comment.

    And Mr Camel (oops sorry had to, been wanting to say that for ages), to register a company online i can get one up and running in minutes for $479.00 AUD… just saying… Then you can register your ABN for free through the ATO etc etc… At these prices i am unsure why someone would not run a company as well..

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1158819
    Kennethti
    Member
    • Total posts: 415
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    umair862, post: 183258 wrote:
    1- So, a person can do marketing for my business and bring projects for me while having his own ABN number.

    Yes. Otherwise there wouldn’t be things like marketing agencies and things like that.

    umair862, post: 183258 wrote:
    2- What should be the ingredients of a good contractor agreement to save my side legally.

    That would depend on what you intend to achieve, but generally speaking it should contain scope of work, remuneration, duration of arrangement, what happens if they breach the agreement, confidentiality, and reasonable non-competitive clauses.

    umair862, post: 183258 wrote:
    3-Is there any other legal aspects I should consider? i.e having Indemnity insurance etc.

    Public liability insurance, Work Health Safety (WHS), Fair Work Implications.

    If you are in NSW please feel free to give me a call and discuss.

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