An incorporated company is a distinct legal entity, regulated by the Australian Securities & Investments Commission (ASIC). A company is a complex business structure, with higher set-up costs and administrative costs because of additional reporting requirements.
For a company:
It will need its own bank account, and its own ACN (Australian Company Number), ABN and tax file number for income tax purposes.
It needs to lodge an annual income tax return, as money earned by the business belongs to the company.
PAYG instalments will need to be paid, which are credited against the end-of-year income tax.
It will pay tax on its assessable income (profits) at the company tax rate (currently 26% for a small business, otherwise 30%), and there is no tax-free threshold.
GST will need to be registered for and paid if annual turnover is more than $75,000.
Compulsory superannuation payments have to be made where required by law in respect of the company’s employees (including yourself, if you are a director paid as an employee of the company) as well as PAYG withholding.
If you receive wages, director’s fees or dividends, these need to be shown on your individual income tax return.
Our range of accounting and taxation services include but not limited to:
Company registration
Your new Australian Company Number (ACN)
Certificate of Company Incorporation
Consents, Minutes and Resolution
Company share Certificates
Copies of all ASIC forms which have been lodged
Company Registers as required by the Corporations Act
Quarterly Business Activity Statements
Company Tax Return