Starting a business and choosing the right structure can be hard, but it doesn’t have to be if you have the right advice. Tilley Accountants specialise in business accountancy services for businesses of all size, structure and industries. With over 25 years’ experience, our expert staff can help you to set up, manage, report and meet compliance requirements.

ABN Registration

The Australian Business Number, or ABN, is a unique identifier issued by the Australian Business Register (ABR) which is operated by the Australian Taxation Office (ATO). Whilst it is not necessary to have ABN, it is highly recommended. If you don't have a ABN, other businesses have to withhold 46.5% from their payment to you. If you're required to register for GST or if you wish to claim Fringe Benefit Tax, you must get an ABN.

ACN Registration

Under the Corporation Act 2001, every company in Australia has been issued with a unique, nine-digit number, an Australian Company Number (ACN), which must be shown on a range of documents. The purpose of the ACN is to ensure adequate identification of companies when transacting business. New companies are issued with numbers by the Australian Securities & Investments Commission (ASIC) upon registration.

TFN Registration

A Tax File Number (TFN) is a unique number issued by the Australian Taxation Office (ATO) to individuals and organisations to help manage tax and other government services. The type of TFN that you need however, can depend on your business structure. If you operate a partnership, company or trust, your business will need its own TFN. A TFN can be obtained at the same time as an Australian Business Number (ABN), using the same application form. Sole traders use their individual TFN in dealings with the ATO.

Set up a Company

A company is a separate legal entity capable of holding assets in its own name and conducting business in its own right. There are many advantages to setting up a company, and this includes limiting liability for shareholders, protecting assets of the business owners, and favorable tax rates. Some disadvantages include complexity and expense to set up and maintain, complex reporting requirements, and public visibility of financials.

Set up a partnership

A partnership is an association of people or entities running a business together, but not as a company. Potential advantages include ease of set up and low cost, opportunity for income splitting. It's easy to change your legal structure later if circumstances change. Potential disadvantages include unlimited liability of the partners for the debts of the business, each partner is liable for actions by other partners, if a partner join or leave, you will probably have to value all the partnership assets and this can be costly.

Set up a Sole trader

A sole trader is an individual trading on their own. It is the easiest business structure to set up and maintain , start up costs are low, and as the boss you keep all the profits. Potential disadvantages are that you have unlimited liability for debts as there's no legal distinction between private and business assets, your capacity to raise capital is limited, and you are taxed at individual tax rates.

Set up a Trust

A trust is an entity that holds property or income for the benefit of others. Benefits include the structure providing more privacy than a company, flexibility in distributions among beneficiaries, and the trust income is generally taxed as income of an individual. Disadvantages of a trust include that the structure is complex, expensive to establish and maintain, complexities of loan structures, and the power of trustee are restricted by the trust deed. There are multiple types of trusts including property trusts, business trusts, family trusts, unit trusts and more.

Set up a Incorporated Association

Incorporation is a voluntary, simple and inexpensive means of establishing a legal entity, separate from the individual members. It is particularly suitable for small, community-based groups. Incorporated Associations are not profit organizations. Any profit made should be kept by the association and should not used by members for personal gain. When a club or community group incorporates, it becomes a "legal person" - that is, a legal entity that stays the same even if its members change. It can enter into contracts in its own name; for example, to borrow money or buy equipment. This protects the individual members of the association from legal liabilities.

Why use a specialist business accountancy practice to set up your business/company?

Get specialist advice on which company or business structure is best suited for your needs

We explain the pros and cons of each structure type

We discuss implications on IP, tax and asset protection

We take care of the appropriate paperwork and registration

The standard rate is $1,200 for setup and registration of a Company, ABN, TFN and business name. The standard rate for a Trust with a Corporate Trustee is $1,815 (includes ABN, TFN and Business Name Registration). Tilley Business Accountants special introductory rate is for new clients only. We can have you up and running in a matter of hours. Ask us for an obligation free consultation. (*conditions apply) Our certified practicing accountants have acted for businesses of all sizes, from small to medium enterprises to international companies. Start your business on the right foot, with the right structure and the right advice. To find out how Tilley Business Accountants can help you, speak with one of our specialist business accountants today!

07 3397 9733