Hi Joshua, You don't need to register for GST (either as a sole trader or a company) if your business is earning less than $75k per year. But it is worth registering, as then you can claim back the GST on things you buy.
If you are registered for GST, then you'll need to add GST to your invoices, and submit a BAS every quarter. Even if you decide not to register for GST, you can register for an ABN. This is a good idea because if you give your clients invoices without an ABN on them, they are supposed to withhold 48.5% of the payment. Registering an ABN and registering the ABN for GST is free (regardless of if you have a sole trader or a company). Registering a company costs $433 in fees to ASIC, plus whatever your accountant / solicitor / whatever charges (there are online companies which can register companies relatively cheaply). Once you have a company, you also need to pay ASIC $230 every year. Saxon On Sat, Jan 26, 2013 at 3:44 AM, Elias Bizannes <elias.bizan...@gmail.com>wrote: > Whoops, trigger happy. > > > Sole trader > - income gets taxes at individual level > - no incorporation means you don't have the 'corporate veil' protecting > you (ie, you can get sued directly) > - less reporting requirements > > Incorporation > - you pay taxes on the profits, though you won't get doubled taxed as a > divided to you the owner has imputation credits (ie, the tax paid by the > company will get credited in your personal income tax) > - you get the corporate veil > - more paperwork. But not that much -- but you do have reporting > responsibilities. > > ACN: is a company > ABN: is for GST. You will need that even without an ACN. > > Elias Bizannes <elias.bizan...@gmail.com> > January 25, 2013 11:40 AM > Sole trader > - income gets taxes at individual level > - no incorporation means you don't have the 'corporate veil' protecting > you (or > > Sent by my iPhone > > Joshua Partogi <joshua.part...@gmail.com> > January 25, 2013 11:30 AM > Hi Beachers, > > I am planning to start a very small consulting business. Can somebody > explain in simple terms what are the pros & cons, tax implications > being a sole trader compared to a company (Pty Ltd). > > Also, if I go for Pty Ltd, is it compulsary that I get ACN & then ABN > ? Or can I just have an ACN only? > > I understand that I should hire accountant to clear up this kind of > question but I would appreciate if I can get an insight first from > those who already have experience. > > Thank you very much in advance for your insights. > > -- > -- > You received this message because you are subscribed to the Silicon Beach > Australia mailing list. Vist http://siliconbeachaustralia.org for more > > Forum rules > 1) No lurkers! It is expected that you introduce yourself. > 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs > > > To post to this group, send email to > silicon-beach-australia@googlegroups.com > To unsubscribe from this group, send email to > silicon-beach-australia+unsubscr...@googlegroups.com > For more options, visit this group at > http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en > > > > -- -- You received this message because you are subscribed to the Silicon Beach Australia mailing list. Vist http://siliconbeachaustralia.org for more Forum rules 1) No lurkers! It is expected that you introduce yourself. 2) No jobs postings. You can use http://siliconbeachaustralia.org/jobs To post to this group, send email to silicon-beach-australia@googlegroups.com To unsubscribe from this group, send email to silicon-beach-australia+unsubscr...@googlegroups.com For more options, visit this group at http://groups.google.com/group/silicon-beach-australia?hl=en?hl=en
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