Hi - I have been contracting for 4 years and just been using a business name and ABN. My income is now consistently $12-13,000 a month and wondering whether it’s time to set it up under a company – what would be the benefits to do so?
I would definitely speak to an accountant who would review all of your financial position and be able to guide you with a more informed view.
My understanding is that using a structure such as a discretionary trust may provide you options to defer tax on earnings or choose how to distribute profits, that you don’t get when you are a sole trader.
Best of luck with everything
PERSONAL SERVICES INCOME.
This will limit any tax advantage of having a company or trust.
And on the subject of trusts.... ..the ATO has taken a LOT of the fun out of having a discretionary trust......
So the best thing you can do is sit down with someone and talk about options.
Business structures can have great benefits, depending on your business and personal circumstances.
You need to speak to your accountant to review the best option for YOU. If you don't have an accountant that deals with business structures, please find one. They will need to know about your business, family dynamics and assets/liabilities at a personal and business level.