Sole trader, partners, company Or Trust, what's your setup

G’day everyone, I do apologise if this post is in the wrong place.

I couldn’t find and threads about setting your business’s up lawfully or legally. I am interested in other professionals opinions and experiences including current business structure and past if applicable as titled and If I may ask, what was the reasoning at the time.

I am a sole trader at this stage because it was simple for me when I began. Sole trader is cheap and simply to start up.
I am now thinking about the future and am leaning towards trust. Mainly because I feel I have more control in every sense of the word.

What’s your thoughts?

Regards,
Jfb

Howdy!

In the US I’m a limited liability company (llc). I’m not sure what the Australian version of that is but it sounds like a trust might be similar to that (based on a quick google search).

I personally don’t like sole proprietor type things because i want to separate my personal assets from business assets.

Sent from my DROID RAZR using Window Cleaning Resource mobile app

I hear you Jared. That’s one reason for me. What about toys for your business to help improve company presence like a 45ft boat for business functions and promotions, maybe the tax bill would be a little less, who knows.

Wow, that would be cool but I’m not sure how my accountant (my wife) would like it if I bought me a nice fishing boat… I might get a call from the IRS on that one. What is the Australian version of the Internal Revenue Service? I heard you guys have the most deadly jellyfish - that might be similar.

To be perfectly honest the ATO here is a private corporation of the United States of America.

But don’t take my word for it, I’m just a window cleaner.

Hey mate, Basically in Australia unless your net profit does not exceed 80k per year you much better off as a sole trader or even better if you are married and your wife doesn’t work you and her go as a partnership, this way you can earn $36000 net profit before you need to pay ANY tax.

If your doing commercial work you should have a 20 million public liability(this required by most commercial buildings and ALL large shopping centers).

If your net profit is higher than 100k per year you really should go a private company( pty. ltd). Everything is more expensive as a company and you do have to pay tax from your very first dollar in net profit, but your taxation bracket remains the same no matter how much profit you earn. Where as a sole trader/partnership you taxation brackets vary depending on your net profit and you have an $18000 per individual in partnership as a tax free threshold.

[MENTION=24315]Steve076[/MENTION] thanks for the input mate. I like the partnership idea as I’m just kicking off again and it may take a little longer to get up there this time.

I left a perfectly good high rise building maintenance business of my own in the hands of trusted workers for the bush, what the blinking hell was I thinking. Jobs were not being completed, one of my guys was quoting my jobs while working on them for me. Why, greed id say. Idiot. He never got the jobs and I lost most of them because of his actions.

I’m back and ready to do it right. A bit has changed and a lot of new comers have arrived. I just went in with blind luck last time. I always had a big commitment to working but no business education, that’s why I’m hoping to start with the advantage of business friends willing to share the finer details. I am a giver mate and that’s a fact. I will always return more than I’m given.

P.s I’m only a few hours from you so if you ever need a hand let me know.

Thanks again

Regards,
Jfb