Tax Agents Sydney: Setting Up A Business
If you are ready to get into a new business, then there’s a lot of preparation involved. The decision to start up a company is one that’s not to be taken lightly. One needs to gain the necessary management skills, industry knowledge and technical nous to be a success. One of the most important components getting a business to succeed, is having the right financial knowledge and good Sydney tax agents.
Number Crunching
The first part of setting up a small business, is working out how much money you need. If you have sufficient savings or will need to take out a loan to cover the start up costs. The cost of a start up will vary greatly depending upon what type of business you plan to open. Some common start ups include:
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- A Franchise business
- Buying an existing business
- Starting a new business [/mt_list]
Just opening up the doors and putting the sign out the front all cost money. So before you start up your ice-cream stand or multinational corporation, you should take heed of the following costs:
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- Legal fees
- Accounting fees
- Consulting fees
- The connection of utilities
- Licencing, permits and council related fees
- Furniture, office fitout, equipment and shop fitouts
- Advertising and marketing collateral, such as: stationery, business cards, brochures and office supplies
- Staff pay
- Technology needs: computers, printers, faxes and display screens, depending upon your needs.[/mt_list]
When setting up a business, an experienced and reliable accountant will be able to guide the way smoothly. When submitting a tax return Sydney is full of these types of tax accountants. There is only one Sydney tax agent who can provide the friendly customer service and guidance that you need – City Tax Accountants.
Getting the Right Expenses Estimate
When planning out start up costs, make sure that you allow for a contingency plan of at least 20% of the cost for the starting up process. This should allow for any unforeseeable expenses. It’s important to overestimate rather than underestimate in these costs when starting up a business. Otherwise, there could be a costly mistake. Also important is the amount contributed by individual owners in the business and what percentage of a stake that they have in the business. Enlisting the help of a reliable and experienced accountant will take the strain out of this process, speak with Sydney tax agents, City Tax Accountants, the premier tax accountants Sydney turns to for help come tax time.
Which Business Structure Is Right For You?
Sole Traders
A sole trader is the most simple business structure and places all of the decision making power with the owner, who can then decide to hire sub-contractors. There are low registration fees for sole traders at around $30 per year or $70 for three years, if you are trading under a business name. This fee is normally payable to the Australian Security and Investments Commission (ASIC). Another benefit of this business structure is that it allows an individual to have full control over their financial and business situation. There are also taxation advantages for when profits are low.
The disadvantages of being a sole trader include that the sole trader bears any responsibility for profit and loss. If the sole trader gets ill then there may be difficulties on-selling the business to another person, or indeed in running or managing the enterprise. The taxation for a sole trader also becomes high when profits are high. If you are wanting to know about the finer points of being a sole trader, then speak with City Tax Accountants, tax agents Sydney. They have years of experience in delivering excellent bookkeeping services and income tax Sydney and surrounds. What are you waiting for? Get started with your business and learn about business structures, with City Tax Accountants, the tax agent Sydney turns to for all of their business needs.
Partnerships
A partnership is created with two people up to twenty people, who decide to go into business together. It is always recommended to have a partnership agreement in place to make sure that everybody in the partnership is aware of their assets and liabilities. Some advantages of partnerships include that you can pool your knowledge and experience and gain new skills. There are certain ways of offsetting tax and receiving benefit, if the partnership is in the same family, such as a husband and wife partnership.
In terms of disadvantages, these are effectively the result of human relationships souring. So a clash between the partners my result in a dispute over profit sharing and the running of the company. Partners can also be held individually and collectively responsible for the defaults of another partner. If one partner decides that he or she wishes to end the business, then that will effectively end the business.
No matter what type of company that you decide to create, it’s always important to be aware of the advantages and downsides of the particular business entity. More detailed assistance with this decision and support, is available from a decent and respected tax agents in Sydney, City Tax Accountants. They are the tax agents Sydney relies upon for solid and up to date taxation advice. If you are looking for a tax return and the inner city have some half decent accounting services, but there is only one Sydney tax agents who can deliver a consistently superior approach to small business tax. Call City Tax Accountants on (02) 9023 9977, Sydney accountants and tax agents today for a consultation, you won’t be disappointed.