Hi everyone
My contract is up for renewal at work and I may have an opportunity to change my employment particulars.
Currently Im sub-contracted, but I may have to cut out the middle man because my employer cannot afford another rate increase and my parent company cannot budge on their cut.
So, Im thinking of going direct, either sol trader, company or trust.
Sol trader woukd leave me open to litigation, no asset protection.
So Im thinking trust or company.
Which should it be? Can I income split using these structure? I know there limitations with income splitting in a company when funds come from mainly one source.
How about being able to purchase IPs through these structures etc.
Any help would be appreicated.
Hi Paulie
I know this is a boring, conservative response but you really do need to seek advice from a qualified accountant. There are other factors that will determine the best course of action – your profession will be one.
It's important you get the right structure in place from the beginning.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Yes, you def need to see a tax advisor as you will need to overcome the Personal Services Income Rules.(which could mean any income earned by the 'company' is actually your money).
Also you should never buy any assets in a trading entity because of the risk involved with business. If the business where to fail you could lose all the assets owned by the business.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
thought as much, thanks guys.
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