Sole Trader
You can trade under your own name or register a business name (Cost less than $100)
Advantages
- Straightforward structure
- No agreement with third parties
- Cheap to establish and operate
- Rollover relief from Capital Gains Tax
Disadvantages
- Low flexibility
- Quarterly PAYG instalments
- Unlimited personal liability for business debts.
Operating as sole trader minimizes the overhead costs of running a business due to the simple structure.
Splitting of income is limited but can be done through normal commercial employment arrangements for family members. Superannuation, employment and Workcover obligations must be appropriately handled.
Protection of Assets
A business owner may transfer assets into the spouse's name so any liability caused by the business failing cannot be charge against those transferred assets.
Business Name Registration
If you use your own name it will not be necessary to register the business name. Should you choose otherwise, then registration is required by law and fees will apply.
Quarterly PAYG instalments
The safe way to control PAYG instalments is to allocate a porion of each months profit to tax and to bank that into a separate investment. When you are assessed the funds will be readily available This process also works very effectively for GST, if you are registered.