Home – New Forums Starting your journey Starting another business different service

  • This topic is empty.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • #988945
    CleanPro
    Member
    • Total posts: 2
    Up
    0
    ::

    Hi All,

    I have spoken to few Accountants and business consultants and they all give me different answers on how to structure my new business. I have been reading through forum for some time now and would like to get your opinion on below.

    My husband had been a sole trader doing painting for 5 years now. I have recently quit my job and decided to start a cleaning business.My accountant suggested that hubby and I set up a trust and operate under two different trading names – one being ABC Cleaning Services (there is a specific name that I want to use for my business which will be the same as my website domain) and another one being ABC Painting Services. We also have two kids 2 and 4 if this makes any difference.

    I have also consulted another accountant and she suggested to start off as a sole trader to save money since I am starting small not planning on investing more than $2K to start of with. Then later on I can setup a company and pay myself and any employees a salary. My concern here is that companies have to pay 30% tax so trust seems like a better option.

    In any case I want to be able to change structure if necessary to suit both me and my husband but would like to keep my existing business name as I have already invested in website and logo design and wouldn’t want to change this in a year or so.

    Would really appreciate your thoughts on above.?

    Many Thanks

    #1169773
    Anonymous
    Guest
    • Total posts: 11,464
    Up
    0
    ::

    Hi CleanPro,

    You’ll find that accountants are only able to give you general advice in an environment like a forum, so it’s possible that no-one here will be able to advise you on your specific situation.

    Nevertheless, I hope that someone will be along to offer you some guidance soon.

    In the meantime, welcome to the forum, and thanks for joining the gang :)
    Jayne

    #1169774
    elliottbailey
    Member
    • Total posts: 34
    Up
    0
    ::

    Totally true that there’s no one size fits all.

    I’ve found that a company has cost about $2000 a year in accounting fees to keep going. This is on the high end so there are some cheaper.

    For a long while my business wasn’t actually making that much so the $2k was a lot! If I had my time again I’d just start as a sole prop and make it a company when larger.

    All the best with it!

    #1169775
    PRO
    Member
    • Total posts: 450
    Up
    0
    ::
    elliottbailey, post: 196803 wrote:
    Totally true that there’s no one size fits all.

    I’ve found that a company has cost about $2000 a year in accounting fees to keep going. This is on the high end so there are some cheaper.

    For a long while my business wasn’t actually making that much so the $2k was a lot! If I had my time again I’d just start as a sole prop and make it a company when larger.

    All the best with it!

    A trust with yourself/or husband as trustee will cost you around $500 to setup and should cost you almost no more in accounting fees each year than if you were in sole trader mode. You can then change to a company as trustee later on with out duty or tax implications. A family trust is very flexible and offers a level of asset protection (great asset protection with a company as a trustee). At your kids’ age now distributing to them is not really too much of option. Great when they are uni students.

    #1169776
    CleanPro
    Member
    • Total posts: 2
    Up
    0
    ::

    Thanks for all your reply’s so far. My main concern is that I do not want to end up paying too much for tax, GST until I actually start earning some money. But I also want to make sure I get to keep the business name for marketing purposes. Can I use two trading names if I do go ahead with the trust?

    #1169777
    PRO
    Member
    • Total posts: 450
    Up
    0
    ::
    CleanPro, post: 196824 wrote:
    Thanks for all your reply’s so far. My main concern is that I do not want to end up paying too much for tax, GST until I actually start earning some money. But I also want to make sure I get to keep the business name for marketing purposes. Can I use two trading names if I do go ahead with the trust?

    Yes.
    Entity would be Jane Doe as trustee for the Doe Family Trust
    This would be shortened to

    Jane Doe ATF the Doe Family Trust

    The ABN and TFN would be registered to

    The Trustee for the Doe Familty Trust.
    As long as you register the business name to the trust you can just have

    Clean Pro
    ABN 1234567891011

Viewing 6 posts - 1 through 6 (of 6 total)
  • You must be logged in to reply to this topic.