All Topics / Help Needed! / to set up company or not?

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  • Profile photo of lyndon_glyndon_g
    Member
    @lyndon_g
    Join Date: 2006
    Post Count: 58
    August 1, 2007 - 9:04 am

    Hi all

    I have recently started a new job where I am a sub-contractor. I also am looking at building a new investment rental property, as i have some equity in my PPOR.

    I have been tossing up whether to register a company and invoice my employer this way, or just stay as is and invoice using my personal ABN. I would also consider purchasing my investment property in the company name, rather than my own name.

    I am not sure of the pros and cons involved in carrying out the above through registered company rather than an individual.

    I would like to continue accumulating investment properties in the coming years also, so i would like to get my sturctures etc all right before i start!

    Thanks all!!!

    Cheers

    Lyndon

    Profile photo of elkamelkam
    Member
    @elkam
    Join Date: 2006
    Post Count: 722
    August 1, 2007 - 12:52 pm

    Hello Lyndon

    The best thing for you to do is go to a good accountant who will be able to tell you the pros and cons of each structure.

    As a non accountant I have two comments to your post.

    Never put your business and your investment properties into the one entity. Why risk being sued for something in your business and lose your investment properties. 

    Look into a trust/company structure for your investment properties rather than a company. There are disadvantages to having property in a trust now a days as land tax is higher, but a trust gives you greater flexibility and also entitles you to a 50% discount on CGT if you sell a property which a company does not get.

    All things to discuss with your accountant. 

    Cheers
    Elka

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