Starting a business from the scratch in Australia is no easy task. There are various factors worth considering. The most crucial factor in choosing the best legal structure for your company. This again will influence a lot of other aspects of your business significantly. These include your capacity to increase funds, personal obligations you need to meet, and your company’s much needed paperwork. It will also affect the amount of duties you need to pay. Hire a Tax Agent Perth to get the best assistance.
Selecting the right legal structure for your business will let you lodge your company tax return efficiently. Now the question is there any one-size-fits-all legal structure that every business can select. The reply of some pros has been a clear ‘no’ to this. Before that let’s know the different types of businesses in Australia.
It’s a kind of partnership and lets owners avail of the positive features of both a partnership business and corporation. The chief advantage of an LLC is that losses and profits are passed on to the owner without any taxing liabilities. LLC owners are also protected from various personal obligations.
It’s a legitimate identity that allows people to run a business lawfully. It sets apart the entities of the operator and founder of the business. This business doesn’t impose any personal liabilities on the owner. A corporation is taxable and legally accountable for its actions.
As the name suggests, a partnership includes two or more people to run a particular business. They must agree to share the losses and profits on a 50/50 basis. The profits aren’t taxable. Besides, the benefits of the profits and losses are passed on to the other partner’s individual income tax return.
The most common and easiest form of business to start. A sole proprietor lets the owner control the business all by himself/herself. The owner has to however meet all the financial liabilities effectively.
Selecting a proper legal structure for your business will let you Lodge Company Tax Return effortlessly. So, choose an appropriate entity for your business by considering the following factors.
Assess the future requirements of your business. These include your company’s needs within the next few years. Evaluate the possible circumstances of your business if you sell it partially or die.
Choose a flexible legal structure for your business suiting everyone’s individual requirements.
Consider the operation and formation costs of your company before choosing your legal structure.
Evaluate the taxing options you are entitled to according to the type of your business. Professionals say that corporations are entitled to more convenient taxing. Partnerships and proprietorships are however lagging behind somewhat.
To evaluate the various crucial legal liabilities you are responsible to meet according to the nature of your business.
To lodge your Company Tax Return in Australia is quite easy. Every taxing year in Australia has the same deadline i.e. from 1st June to 30th July. A corporation how can form an alternative income year from 1st January to 31st December. After you lodge your tax return, you must pay the required duties. You need to pay the same via the PAYG instalment system. Companies whose yearly tax is below AU$8,000 and aren’t registered for GST cannot access this system.
Read More:- How to Prepare a 2020 Company Tax Return ?
So, hire a tax agent in Perth today. Your tax agent will assist you to select an apt legal structure for your business. Then, he/she will help you to lodge your Tax Return Perth successfully.