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Anyone an accountant? Need Pty Ltd advice


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Thinking about jumping ship to another company to work as a contractor, the current mob just needs us to have an ABN. The company I'm thinking of switching to requires Pty Ltd.

 

I've seen places online that will set you up for around $500. I don't need anything fancy, it's just me working for the company.

 

Once set up, any ideas what an accountant typically charges for an annual company return? Just need to factor in if the added costs are worth my time changing - the added money might get eaten up in other fees.

 

Once set up, I will be a director of the company - how do I go about drawing a salary? Do I need to employ myself under the company? or can I just remain as a sole trader who draws money by invoicing the new company?

 

Anyone who isn't an accountant who has a similar set up can probably answer most of these questions for me.

 

Thanks for any advice.

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I was set up as a company (no longer trading)

Accountant set up the whole deal. Company was bought off the shelf.

Basically company name has a PTY LTD. The company has one dollar in its account in case you get sued.

The company has a business trading under that company set up as a trust.

You don't necessarily take out a wage its worked out with the accountant, its averaged over the year when you do your taxes.

The benefits are the tax breaks you get.

 

It used to cost me a lot in $$$ to run the company, I didn't want the headaches of filling out paper work so my accountant did it all, although I claimed the expenses it was still expensive.

 

Speak to an accountant they know the tricks of the trade.

 

goodluck.

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Thanks mate.

 

I just emailed my accountant, hopefully he'll get back to me in the next 24 hours.

 

I'm looking at what I'm earning now, and what the other company is promising me - and it's about a $10k difference in earnings, so as long as running the company doesn't cost me an arm and a leg, it's looks like I'll change to the new place.

 

I have had a Pty Ltd in the past, but that is well over 10 years ago and bugger me if I could remember how much it used to cost me to maintain it.

 

I've heard about the tax implications and benefits of having a trust, but I don't think that is necessary in my particular case and probably adds to the cost. Hopefully my accountant will shine some light on this without having to bill me for the advice :) He's made enough money out of me these last 10 years to throw me a bone on this one I think :lol

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I'm a Pty Ltd and do the bas myself - it's simple, perhaps get the accountant to show you and the you can do it ongoing. He may try to load that up and that's where the cost is...,

It's all online now or you can do via paper.

Just draw the full amount from your co as a wage. You'll be considered a normal wage earner, unless you have multiple income sources, so can't avoid tax like the old days.

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I had a pty ltd company - pain in the arse but it didn't cost me that much for the returns.

 

Maybe ask your accountant what he does to earn those $$ and decide if you can do some of that yourself to save some cash

 

 

Got an answer from my accountant. Through him, $1000 + GST to set up the company. Then $255 yearly to ASIC and then around $1200-$1500+GST each year to have annual returns and any other crapola done. Ouch!
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Be aware that the ATO takes a dim view of schemes where people who are effectively employees are used as subcontractors.

 

Just because you say you're a subcontractor doesn't make it so in the ATO's eyes. They have a checklist to determine the likely validity of a situation.

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The 80/20 rule will apply so you're effectively a payg employee. I still do it and ware the costs as I like to get the full day rate in my pocket and pay gst/tax at the last minute.

If you have one client you'll be caught under the personal services act and can not expense like a company can to minimize tax

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I'm a Pty Ltd and do the bas myself - it's simple, perhaps get the accountant to show you and the you can do it ongoing. He may try to load that up and that's where the cost is...,

It's all online now or you can do via paper.

Just draw the full amount from your co as a wage. You'll be considered a normal wage earner, unless you have multiple income sources, so can't avoid tax like the old days.

 

Nah BAS isn't the issue, it's the annual company return. I've been doing my own BAS for a long time now, and it is a piece of piss - found out the hard way by getting an accountant to do it once, saw the bill and said "you want how much for doing that?" :lol

 

Where I think I'll need my accountants advice, is that I want to remain as a sole trader under the company for various reasons that I won't get into.

 

- - - Updated - - -

 

The 80/20 rule will apply so you're effectively a payg employee. I still do it and ware the costs as I like to get the full day rate in my pocket and pay gst/tax at the last minute.

If you have one client you'll be caught under the personal services act and can not expense like a company can to minimize tax

 

Had another member mention this to me by PM. Think I might need to just go see the accountant and fork over the extra cash to get the right advice.

 

A lot of couriers work as contractors, independent contractors or sub-contractors - and for some reason, they seem to be able to fly under the 80/20 ATO radar. Maybe a call to the ATO is required? Though I'm sure that will be hours without getting a definitive answer.

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