Superannuation Tax Rates
Forming a Company: A Critical Decision For Business People by Martin Artenstein
Forming a Company: A Critical Decision For Business People
By Martin Artenstein
Chartered Accountant, Morris Cohen, Glen & Co.
One of the earliest and most important decisions facing people wanting to own or run a business is what legal structure they should adopt. Mostly, people will consider three possible options: working as a sole trader, partnership or proprietary limited company.
It may seem simpler to operate just as a sole trader, or self-employed person. Many people choose this option, including those who have retired from full-time jobs to now do part-time work.
Sole traders are their own boss, keep all the profits from the business, and have the least reporting to do to the government.
But the Corporations Law applies to people carrying on a business, not just to companies. Certain documents have to be registered and lodged with the relevant government authorities, whether the business is incorporated or not. Tax returns and annual returns still have to be prepared.
The self-employed person has to pay income tax at the personal rate.
Further, working as a sole trader may mean intrusion into one
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