Trading as a business - Aussie Stock Forums

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  1. #1

    Default Trading as a business

    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??


  2. #2

    Default Re: Trading as a business

    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.

  3. #3

    Default Re: Trading as a business

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


  4. #4
    PlanYourTrade > TradeYourPlan RichKid's Avatar
    Join Date
    Jun 2004

    Default Re: Trading as a business

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

    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.

    My posts are not recommendations (even when I rave about something). Always rely on your own research & judgement.

  5. #5

    Default Re: Trading as a business

    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.


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

  6. #6

    Default 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


  7. #7

    Default Re: A Business?

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

  8. #8

    Default 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

  9. #9

    Default 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.

  10. #10

    Default Re: A Business?

    Yeah ok,

    I will have a chat with the bean counter

    Cheers Stink

  11. #11

    Default 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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