When To Setup a Company Structure AUSTRALIA

In this video, I go into detail about things to consider when deciding on what business structure is most suitable for your situation.
Choose between a Pty Ltd Company structure or a discretionary trust.
Both situations have pros and cons but it's important for you to think about the long term aspirations of your business and what direction you would like to take it.
Blog article: bit.ly/2LsZUjY
-
Thank you for watching this video. I post weekly videos on this channel to provide the latest and most frequently asked business questions. Please take a second to say hi in the comments below. Also, if you enjoy my comments and find it valuable, subscribe to the channel, like and share it with anyone who you think might find my channel useful!
-
► Subscribe to my channel here:
/ daviemach
-
Davie has over 10 years experience in advising businesses in management accounting and taxation issues. He heads up a passionate team at Box Advisory Group who are dedicated to offering proactive and outstanding service to our clients.
Davie’s extensive experience in providing tax and consulting advice and astute business knowledge has paved the way for success for many businesses.
He is a member of the Chartered Accountants Australian and New Zealand, a member of the Australian Tax Practitioners Board and holds a Bachelor of Commerce degree from the University of New South Wales.
-
Follow Me:
LinkedIn: / davie-mach
Instagram: / boxas_syd
Facebook: / boxadvisory
Website: boxas.com.au/
-
DISCLAIMER: Please note that every effort has been made to ensure that information provided in this video is accurate. You should note however, that the information is intended as a guide only, providing an overview of general information available to contractors and small businesses. This guide is not intended to be an exhaustive source of information and should not be seen to constitute legal or tax advice. You should, where necessary, seek your own advice for any legal or tax issues raised in your business affairs.

[@agentdark64]

And a sole trader doesn't have to worry about company constitutions or meeting of minutes, resolutions or any legal requirements to write down and sign on a piece of paper: RESOLVED: XX did this and that even if your company had only one person in it.

[@heyitskan2404]

Thanks for this awesome video!!

[@DavieMach]

No problem!

[@4X4NAV]

Hi Davie, thanks for the great informative video. Is transitioning from a sole trader to a company more expensive than just starting a company from the beginning? I'm about to start a e-commerce business and while I hear your point regarding additional costs of reporting etc, I can't help but think of all the issues that may arise, especially if I understand correctly that you will need a new/different ABN. Transferring ownership of a web domain from the business to a company, cancelling contracts with suppliers and having to apply for new ones under the new ABN, changing business cards/receipt books, updating banks etc.... Is it as big of a deal as I'm thinking?

[@DavieMach]

Hi, it’s best to seek professional advice for this as it appears to be highly specific and a range of variables can affect the result.

[@firaselachkar4159]

Tedious business administration tasks are not a reason to not properly and proactively structure your business

[@johannanthonis2042]

Hey Davie do I have to get a new abn number if I am transitioning from sole trader to company

[@Dillonpickle]

thank you

[@DavieMach]

No problem
Thanks for watching

[@irenedang7720]

Gosh! I only make around 75k pa and my accountant told me to transition into a Pty Ltd company for tax saving purposes. Turns out I save nothing but spending thousands of money. Wish that I could've watched your videos sooner before making my decision.

[@DavieMach]

I am so sorry to hear about that! Sometimes in business you wont always make the right decision and its important to keep moving forward. You will always make mistakes, just learn from it and improve! I've made plenty of mistakes and spent thousands of dollars! :)

[@aaronreid9540]

What set up would you recommend for a restaurant?

[@DavieMach]

Hard to say without knowing your goals, family, business partners, income level, assets, risks and capital.
But definitely recommend either a company or a trading trust (usually only if there are family members or a range of business partners).

[@thetaufavlogs9758]

Her mate can a sole trader pay a persons wages use if his abn ?

[@DavieMach]

Soletraders can pay employees but make sure you do this through STP.