Company Setup.
If you're planning to set up a company, it's crucial you understand the specific legal and tax responsibilities that come with running your own business via a company structure. Among these responsibilities is the need to lodge an annual company tax return with the Australian Taxation Office (ATO). This tax return is essential as it documents your company's earnings, expenses, and investments, which are all necessary for the ATO to assess your company’s tax obligations.
Here at Causbrooks, we are committed to supporting you through the entire process of setting up and maintaining your company. We ensure your business complies with the Corporations Act and ATO regulations, assisting you with everything from the initial company registration and obtaining an Australian Company Number (ACN) to the ongoing management of company structure and compliance.
Our goal is to ensure your company meets its legal and tax obligations, allowing you to focus on growing your business.
How Causbrooks Can Help with Your Company Setup.
Company Registration and Structure Consultation.
Initiating the company setup process involves selecting a suitable business structure, such as a proprietary limited company or public company, depending on your specific business needs and goals. We help you understand the differences between these structures and guide you through the registration process with the Australian Securities and Investments Commission (ASIC). This includes obtaining an Australian Company Number (ACN) and ensuring your proposed company name is registered. We ensure your company complies with all legal obligations under the Corporations Act, establishing your business as a separate legal entity.
Legal Compliance and Operational Framework Setup.
Compliance with legal standards is crucial for your company's success and legitimacy. We assist in setting up your company as a legal entity, ensuring it meets the requirements set by the Australian Business Register and the Australian Taxation Office (ATO), including registration for Goods and Services Tax (GST), if applicable. We help draft your company constitution or adopt replaceable rules, depending on your preference. Our services also include advising on your responsibilities as a company director and officer, including obtaining Director ID via the Director Identification Number (DIN) and understanding personal liability in relation to the company’s debts.
Financial and Administrative Support Services.
After your company is registered, our support extends to setting up your registered office address, managing company documents, and establishing bank accounts. We advise on the company tax rate that applies to your income generated, can give guidance around how to raise capital, and ensure you meet additional legal obligations such as annual statement submissions to ASIC. If your company structure includes directors or a company secretary, we provide guidance on the responsibilites of these roles.
Set up your Company with Causbrooks
At Causbrooks, we’re dedicated to helping businesses with their taxation and accounting needs. If you’d like to discuss your own situation, please complete the form below.
Our team of dedicated accountants is committed to providing the best possible experience for our clients, and we believe that our combination of longevity and experience in the industry and our commitment to embrace innovation and change make us uniquely qualified to do so.
Steps on how to Register a Company with Causbrooks.
Set up your Company Today!
Why you should consider setting up a company.
Setting up a proprietary company in Australia, compared with operating as a sole trader, can offer significant advantages, particularly in terms of asset protection and taxation. A company is a separate legal entity, meaning personal assets can be safeguarded from the company’s debts, a critical feature if the business faces financial challenges. Conversely, as a sole trader, you would usually be personally liable for all business obligations, potentially exposing your personal assets to potential risks.
From a taxation perspective, companies benefit from a fixed corporate tax rate, which could be lower than the personal marginal tax rates that apply to sole traders as their income increases. Using a company structure could result in considerable tax savings as the company grows. Additionally, while setting up a company involves more steps at least initially—such as registering a company name, obtaining an Australian Company Number (ACN), and adhering to the Corporations Act—these efforts can lead to more streamlined management and administration in the long run.
Moreover, companies can offer greater flexibility for growth and exit strategies than other business structures. Unlike sole traders who must rely on personal loans or restructuring to raise capital, companies can issue shares to attract investors. Selling or transferring ownership is also more straightforward with a company, as it exists as its own legal entity. This structure not only facilitates raising capital, it also simplifies the process of transitioning or exiting the business.
Setting up a company with Causbrooks comes with several practical advantages:
Protection from Personal Financial Loss.
When you create a company, it becomes its own legal identity. This structure means that the owners (shareholders) are generally not responsible for the company's debts, protecting their personal assets. However, it’s important to note there are exceptions, such as when owners have used their personal assets as guarantees for business loans.
Potential Tax Benefits.
A company pays taxes at a corporate tax rate, which might be lower than individual tax rates, especially as business income increases. This setup could lead to tax savings, although it's worth mentioning that the company tax rate applies to every dollar earned from the start.
However, setting up a company also comes with important responsibilities. Company directors and officers must follow specific rules under the Corporations Act to operate legally. They must act in the best interests of the company, and failing to comply can result in penalties from the Australian Securities and Investments Commission (ASIC).
These elements show that while setting up a company can offer significant financial protection and potential tax advantages, it also requires careful management and adherence to legal obligations.
About Causbrooks.
Causbrooks gives you a client manager supported by a team of knowledgeable small business experts. We’re here to take the guesswork out of running your own business.
Get in touch with us to set up a consultation or use the contact form on this page to inquire whether our services are right for you.
Disclaimer
Any advice contained in this document is general advice only and does not take into consideration the reader’s personal circumstances. Any reference to the reader’s actual circumstances is coincidental. To avoid making a decision not appropriate to you, the content should not be relied upon or act as a substitute for receiving financial advice suitable to your circumstances.
Contact us today for a consultation.
Contact us today to learn more about how our accounting services can benefit your business. We look forward to hearing from you and helping you achieve financial success!
