Start-ups are big business in my area at the moment.
Most generally seem to be tradies, making their way up here following the house building boom.
If you're a tradie who has recently started in business and you haven't met with your accountant of choice because you're too busy, check to see if these frequently asked questions are on your list.
What's the best tax structure for me?
A company is a good choice. Companies require a little more in the compliance and filing area but are still what we advise for tradies and even one man bands.
Companies have a better tax rate, limited liability, and are more flexible when it comes to growth which might come in the form of additional shareholders.
You can form a company yourself for under $200 which comes with IRD, GST and PAYE registration all on the companies office website - if you get stuck an accountant can help.
What should I do about ACC levies?
Your best bet is to sign up for ACC CoverPlus Extra. This provides an agreed amount of ACC cover should you have an accident.
Should I register for GST?
If your turnover is going to be over $60,000 a year then yes you will need to register for GST. Remember turnover isn't profit - it's the gross amount you sell which might include labour and parts or materials.
Some start-up businesses don't think they will make the $60,000 threshold in the first year but registering anyway may have several benefits, including claiming GST on your setup costs such as tools and vehicle, getting used to filing returns, and ensuring your clients understand your pricing from the get go.
Should I take drawings or put myself on PAYE from my company?
In most cases drawings is the best way to take money from your company. This way you'll have the benefit of having the tax money in your bank longer.
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Fax: 438 8455
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If we had to sum up Brent and the team at Plus CA it would be - humorous, efficient, professional with a real focus on making your money work to its best ability for you...we will continue to deal with them even though we are moving overseas as we know they have our best interests at heart.
Jeremy thank you for your patience, assistance and general chit chat over the years. I would have absolutely no issue in recommending your services to everyone and anyone – in fact, I do.
We recently employed Jeremy Tauri of Plus Chartered Accountants and have been thrilled with the improved service we have received. Jeremy is really approachable and always available to answer queries. At his instigation we have set up quarterly meetings so that we are regularly reviewing our business and avoiding any ‘end of year surprises’.