Are you planning to set up a new business in Geelong this year? Or perhaps you’re looking to expand an existing venture?
A key decision you’ll need to make as a new or growing business is selecting an appropriate structure. Here are three ways that choosing the right Geelong accountant can help you with this task.
1. Identify a start-up business structure
There are four primary business structures in Australia:
- Sole trader;
- Trust; and
Each structure has advantages and disadvantages, so selecting the best one for your start-up will depend on your financial goals, growth plans and appetite for risk.
What are the pros and cons of company structures?
Geelong tax accountants at WMC Accounting can work closely with you to set your business priorities and find a tax-efficient structure that recognises the unique challenges your start-up will face now and in the future.
2. Switch to a company at the right time
Many entrepreneurs begin as sole traders or partnerships because they are more cost-effective and simpler to set up and run.
But there may come a time when your organisation outgrows these benefits and a new business structure is required. Typically, you will move to a company structure, which comes with a number of challenges, such as:
- New reporting requirements;
- A more complex hierarchy of directors and shareholders; and
- Compliance with the Corporations Act 2001 and other legislation.
Sole trader vs company. Learn the differences between them and how to change business structure at http://t.co/LvkFfC7JK9
ato.gov.au (@ato_gov_au) June 12, 2015
How can accountants help with this business structure? We can inform you of the best time to switch to a company, as well as guide you through any new obligations and tax compliance needs.
3. Trust advice and guidance
Tax accountants can offer a range of services and tips for setting up a Geelong organisation, including whether or not a trust structure would benefit your business.
Discretionary trusts, for example, offer significant flexibility with regards to tax minimisation and asset protection, but they can be very complex to set up and run.
WMC Accounting can provide a multitude of trust-based services, such as:
- Preparation and execution of documents for trust formation;
- Fulfilling specialist reporting requirements;
- Trust administration and taxation obligations;
- Asset management and investment monitoring; and
- Income distribution.
Taking the next step
Choosing the right Geelong accountant can ensure your business is prepared to take advantage of today’s opportunities, while also being future-proofed for the challenges of tomorrow.
We’ve shown how accountants can help you with business structures in Geelong, but please book an appointment if you’d like more information on the business advisory services that we deliver.