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小河

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[ 本帖最后由 小河 于 13-5-2011 13:28 编辑 ]

shuangchao

You have to have an ABN to run a business, but you do not necessarily need to trade under a Company.

The decision to trade under a Company is often based on:

- The Company's ability to limit your liabilities (in another works, if you operate under a high risk industry, you should not trade under your own name, as your personal assets are up for grab)

- Tax advantage (Company has a fixed tax rate of 30%, however, this is only an advantage when you have considerable amount of profit)

When you trade as a sole trade, the profit you make is assessed at your own tax rate which could be as low as Nil or as high as 45%.

Overall, If your business has high turnover or is in a high risk industry, consider operating through an entity (company, trust or combination of both) other than soletrader.

小河

Thanks so much!