# Trading as a business



## wags (18 November 2005)

Hi guys,

Is there any advantage of trading as a business instead of an individual??  I am aware of the tax rules for individuals but what about for businesses??

Thx


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## tech/a (18 November 2005)

By business you mean company?

If you're just talking Sole trader as in owner operator then I'd say no.
If you were employing people and/or making over 75K a year then the tax advantages of a company may be worth investigating.

If this sounds like you find a good accountant.

Thats not that easy.
I interviewed 3 before I settled on mine 15 yrs ago.


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## wags (18 November 2005)

Thanks for the advice.  I will find an accountant to talk to about this, as I make more than 75k.

thx


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## RichKid (18 November 2005)

wags said:
			
		

> Thanks for the advice.  I will find an accountant to talk to about this, as I make more than 75k.
> 
> thx




If you do start a small business, then going by all the concessions the govt has been bribing small business owners with during elections it should be a good thing if it suits you.


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## mit (18 November 2005)

A company is only taxed at 30% so there is an advantage if that is less than your marginal tax rate. However, you will have to make up the difference if you pay yourself from the company as a dividend, So the advantage is mainly if you are reinvesting most of the proceeds.

I think you have to be careful on how you set it up as the tax department frowns on it if it thinks you are just setting up a company  to minimize your tax.


MIT

*** I am not an accountant so always take professional advice ***


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## stink (25 August 2006)

*Trading as a business?*

Should you trade under an ABN? what are the benefits for doing so?

Is this only something to worry about when trading large amounts of money?

I have actually had an ABN for a business in the past, could i re-register this abn but for a trading business?

Any advice would be greatly appreciated

Stink


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## tech/a (25 August 2006)

*Re: A Business?*

As a sole trader no.
If your starting a company/or super then yes.
Contact a good accountant.


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## stink (25 August 2006)

*Re: A Business?*

Haha thanks Tech, i had a feeling you would comment if you were around.

Yeah i will speak to my accountant, and yes i am looking to look after my super as part of my long term plan.

Cheers Stink


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## tech/a (25 August 2006)

*Re: A Business?*

As part of your SMSF
you'll probably do it as trustees of XXX superfund which will mean an ABN will be allocated as a requirement for a SMSF.


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## stink (25 August 2006)

*Re: A Business?*

Yeah ok,

I will have a chat with the bean counter

Cheers Stink


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## 6figures (5 April 2011)

*Trading as a business..*

Hi all,

What is the best, most simple way to get yourself set up as a business, so you can account for trades, etc separately, as well as account for expenditures such as education and equipment such as computers, etc?

what do you do? trade as a business or just continue to trade as an individual?

thanks in advanaced


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