|What structure should I choose?|
|What are my tax obligations and how do I pay?|
|How do I pay myself?|
|What’s the best way to fund vehicles and equipment for my business?|
Going into business is an exciting time, especially when it’s driven by passion and ambition. However, it can also raise anxieties as you question whether things will work out and when your next pay cheque is coming in.
In the middle of this, you’ll need to make big strategic decisions such as how you’ll structure your business and run things. Get it wrong and your business might fail to meet its potential, plus you could be putting yourself at unnecessary risk.
By taking the time to understand why you’re going into business and what your professional and personal goals are, we can help you get it right and build a rock solid foundation, from going over the finances to advising on the best set up and best practice.
By helping you pick the right business structure, we can reduce risks and maximise the rewards.
We can help you minimise how much tax you pay and better plan so you can meet your obligations.
Don’t fail to plan, plan to win by working with us to understand your business, value and customers.
We can recommend the best tools and software for improving efficiency and simplifying your processes.
From your financial structure to costs, cashflow and borrowing options, we can advise for best results.
As well as determining net wealth, we can assess your business viability and provide profit projections.
This depends on your individual circumstances as every situation is different. To help you figure it out, there are three main things to consider.
The first is asset protection – how can I structure myself so that my personal assets are protected? The second is tax minimisation – how can I structure myself to minimise the impact of any tax. The third is your exit strategy – what will the implications be when I sell or wrap things up?
Only after getting to know you and the specifics of your business and personal circumstances will we make a recommendation.
Every business needs to lodge a tax return. What you lodge and how much you pay depends on your profitability and your chosen business structure.
Whatever your specific obligations, you must lodge and pay by the due dates so make sure you have enough to cover it. We recommend planning for what your potential taxable profit will be and providing for it throughout the year by physically transferring money into a separate bank account.
You can pay yourself in various ways. If you’re actually working in the business, the most common way is to draw a wage, similar to if you were an employee. If you’re structured as a company, you’ll also be entitled to shareholder dividends paid from the after tax profits of your company.
If you’re structured as a sole trader or partnership, you typically earn income on the distribution of profits in the form of drawings. In this case, it’s really important you understand the tax implications.
Ultimately, you need to choose what’s going to be the most tax effective.
As a rule of thumb, you’d normally take out finance on an asset e.g. vehicles, equipment etc, based on the life of that asset. For example, if you wanted to buy a van and expected to make use of it for four years, you should take out a four year finance plan.
Normally, this type of financing is arranged via a lease or a short term loan.
In the face of your death, total or permanent disablement or a trauma event you need to ensure you have adequate insurance policies in place. The funds released will allow your business to continue to trade, or possibly allow funds for someone else to buy your share.
As this is a complicated area, we can offer tailored advice depending on your personal circumstances and the desired wishes.
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