BUSINESS STRUCTURE

Shah Tax & Audit Services aihttp://www.shahtaxaudit.com.au/audit.phpds in selection of appropriate and befitting structure as per the requirement of the client. Our services encompass end to end solution from set up to registration. A specific structure affects the tax liability, asset protection, and costs borne. The cost and complexity in these structures differs widely from each other. The choice of structure can be changed as the business grows. Choosing the right business structure is very important for the business. We consider various factors such as number of people involved, approximate income a business is expected to generate and growth plan. We take care of our client’s time, money and paperwork involved in the process. According to the structure decided the business will have to register for Australian Business Number (ABN) issued by the Australian Tax Office (ATO) or Australian Company Number (ACN) assigned by the Australian Securities and Investment Commission (ASIC). Various structures are as follows:

Sole Trader -This category of structure is the simplest and least expensive as it requires negligible or few legal formalities. Sole trader is the sole owner and has all control. Here sole trader trades on its own and is responsible for all debts and losses. This structure is easy to set up, gives 100% control to the owner, allows keeping all the profit and involves less legalities. The drawback of this system is that it puts all liability on the owner and raising finance can be difficult task.

Partnership -An entity is considered to be in partnership in case of association of people who run business and receive income jointly. This structure is relatively inexpensive to set up and operate. The advantage of this structure is that it allows partners to share risk and responsibilities and funding does not pose much challenge. However, this structure divides authority and profits amongst the partners in proportion of their share. Also there is a cap on partnership size.

Company -A company is a legal entity regulated by the Australian Securities & Investments Commission (ASIC). It comprises of shareholders and Directors. A company has a higher set up and administrative cost. Financial liability is limited to the company assets. Funding for expansion can be raised easily by involving more shareholders. Also the ownership can be easily transferred. Running a company involves regulations and record keeping. The information is supposed to be publicly disclosed.

Trust -A trust is run by a trustee to hold assets for benefit of others. Setting up a trust can be expensive business as it involves various formal processes. A limitation on liability is an option in trusts. It providGST Returns

Shah Tax & Audit Services provides a platform to its clients to meet their GST obligations promptly. The firm is involved in preparation and lodging of Business Activity Statements (BAS)/ GST returns on monthly, quarterly or annual basis as requested by the client. GST is tax of 10% levied on certain goods, services and other items sold in Australia. GST cost is borne by the final consumer of the item. The companies or producers collect this cost from the consumers. This amount is to be paid when due. Our portfolio includes filing return of GST. This activity involves registration for GST, analysis of taxable sales of the client organization, check the allowances and concessions in GST module, calculation of amount applicable for GST return, issuing tax invoices and lodging this activity to the tax office.

A business that generates $ 75,000 or more of annual turnover needs to mandatorily register for GST. For businesses with turnover less than $ 75, 000 have an option to not register for GST. Our team helps you understand the nitty gritty of lodging GST. A business may collect taxes from its consumers. On the other hand business may have to pay GST when the supplies are bought. Ultimately at the end of tax period, the difference can be sent to tax office as per the inbound and outbound taxes applicable.

The business activity statements are generated to report periodic transaction and tax obligations a business is entitled to. All the GST information will be complied by our team and recorded for future reference. Monthly, quarterly or annual returns can be lodged as per the suitability of client’s business cash flows.