No matter you run a business as a sole trader or through a company, we can provide tax solutions and bookkeeping service.
When you are a sole trader, you use your individual tax file number (TFN) when you lodge your income tax return.
The business income is treated as your individual income and you are solely responsible for any tax the business must pay. This means that, after claiming a deduction for all allowable expenses, you include all your business income with any other income and report it on your individual tax return.
You can register for goods and services tax (GST) if you think your annual business income will be more than $75000.
Many business owners like to set up a proprietary company limited by shares. Private companies are regulated by the Australian Securities and Investments Commission (ASIC).
Becoming a company can also be good for the brand with the marketplace viewing you as a higher status business.
A company is a separate legal entity and has its own income tax liability. A company pays income tax on its assessable income (profits) at the company tax rate, which is currently 30%.There is no tax-free threshold for companies, it will pay tax on the first dollar of profit it earns. Owners, directors, and office holders declare salary, wages, directors fees and dividends received from the company on their personal tax return and pay tax according to the individual tax rates.
Unlike a sole trader, a company requires a seperate TFN and ACN. They both need an ABN to run the business. We can help you to setup a company and register an ABN, ACN and TFN.
We provide services for sole traders and companies:
- Company Tax Return Preparation
- Individual sole trader tax return Preparation
- Tax Planning
- Preparation of Financial Reports
- Business Advice
- GST & PAYG Advice
- BAS Preparation
- FBT Preparation
- ABN Application
- TFN Application
- Business Name Registration