CadburysFingers

Hi.

I am currently in the process of setting up a business, after taking a couple of years off. My problem/question is, should I make it a partnership, or sole trader, which is better for tax purposes. I will be doing all of the work, but possibly need to include my wife as we aim to be assurers. As all Mums know, she has more than a full time job already with our two children. Added to the equation is we have offered to be assurers of support for two contributory parental visas (both sets of parents) we have been told by an agent that ONLY taxpayers can be assurers, hence the reason to include my wife as a partner, otherwise, she isnt going to be classed as a taxpayer, because she is full time with our children..................hope that makes sense. Is this the correct way to go about it, or is there perhaps a loophole in the system that will allow my wife to be an assurer for her parents without being a taxpayer. Or is there no difference (to us financially) if the business is registered as just me, or as a partnership, then we are both taxpayers.

Suni&Jay

Best thing to do is get proper advise, all case's are different.
We are going to buy a business and went through all the ways it can be setup for tax, but won't know which one to go for until we buy the business

CadburysFingers

Dont worry I am definitely running this past an accountant befroe I get up and running, just wanted to see if anyone had some "actual" experience of the problem they could share, then I would be keyed up when I see the accountant. Thanks for your advice.

sassenach

When my OH wasnt working she was registered in the business because it was beneficial to do so ,now she is at work she is no longer on the business name .But as suggested proffesional advice is a better option .

CadburysFingers

Thanks for the replies guys.

Carbery

It is very important to get the right structure for your business at the start of your venture. After exploring various options we decided that the best for us was a family trust. This is attractive for people with kids as tax can be offset against all members of the family. We formed a company as trustee of the trust with myself as the only director. It is best to get professional advice from an accountant, when the type of structure has been decided a solicitor can do all the administration involved. We own a retail business on the Gold Coast and have found the 'paperwork' involved in the setting up, administration, and hiring of staff has taken up a lot of time.

Carbery

You won't get far if you have no structure before you buy a business. No supplier will deal with a business if they cannot give their ABN. All suppliers we deal with require completed application forms with all business registration details as a condition of supply.

Suni&Jay

Yes we know that, but because we hope to have more than one business we have to look into all avenues. We will have to have a structure set up be fore we actually 'buy' the company
We will more than likely go down the family trust route, me being the only director and the wife having all the assets in her name.
We have been told trust can be setup very quickly and you can get your ABN quick too.

Carbery

We will more than likely go down the family trust route, me being the only director and the wife having all the assets in her name.
We have been told trust can be setup very quickly and you can get your ABN quick too.[/QUOTE]

That is almost exactly the same as we have done, placing all your assets (house, car) in the name of a 'non director' gives separation between business assets and private.
If you are buying an existing business make sure a period of 'Due Dilligence' is put into any contract before signing. If the vendor is unwilling to agree to this think very carefully before signing anything!

Suni&Jay

That is almost exactly the same as we have done, placing all your assets (house, car) in the name of a 'non director' gives separation between business assets and private.
If you are buying an existing business make sure a period of 'Due Dilligence' is put into any contract before signing. If the vendor is unwilling to agree to this think very carefully before signing anything![/QUOTE]
I wonder why this is, the accountants made it very clear to keep personal assets away from business? back in the UK we just had Limited companies and both where directors

Alan Collett

Family trust structures underpinning trading companies are far more common in Australia than in the UK - I think this is a function of cost more than anything else.

Best regards.

Carbery

I wonder why this is, the accountants made it very clear to keep personal assets away from business? back in the UK we just had Limited companies and both where directors[/QUOTE]

Once you see a few contracts you have to sign with suppliers of goods/services giving them huge rights to your assets if you contravene the agreement it will make your eyes water!
We owned a retail business in Bournemouth for 18 years before moving to the Gold Coast & with most suppliers we didn't even have contracts.

Suni&Jay

Once you see a few contracts you have to sign with suppliers of goods/services giving them huge rights to your assets if you contravene the agreement it will make your eyes water!
We owned a retail business in Bournemouth for 18 years before moving to the Gold Coast & with most suppliers we didn't even have contracts.[/QUOTE]
I guess it's like the US as well where everyone wants to sue you for every little thing.
Know what you mean about the UK, we dealt with people like British Gypsum etc. with no guarantees

Carbery

I guess it's like the US as well where everyone wants to sue you for every little thing.
Know what you mean about the UK, we dealt with people like British Gypsum etc. with no guarantees[/QUOTE]


It is intimidation but we have no choice but to sign. Although we have not had any trouble since taking over - so long as we pay the statements on time.

Suni&Jay

It is intimidation but we have no choice but to sign. Although we have not had any trouble since taking over - so long as we pay the statements on time.[/QUOTE]
Do they work on 30days accounts, and is it a strict 30 days or can you push it to 45days?