MWL FINANCIAL GROUP
SECTION – TRADIES
SUBJECT – What is a company?
Hi I'm Barbara Keating, Accountant and small business specialist at MWL Financial Group.
Are you in business or considering entering into business? Are you aware of the various structures available?
One of the more common structures is something called a company. Forming a company is like creating another person – the company is liable for its own debts and taxes. Its day to day affairs are run by its directors, who are chosen by the company owners – also known as shareholders.
While a company may be expensive to run and there are tight restriction to use of company funds, it does have some big advantages. A company offers asset protection to its shareholders, as they are not liable for the company’s debts – therefore if any legal issues arise from the business, the personal assets of the shareholders is safe from litigation.
The advantages extend to taxation, as the company tax rate can go as low as a flat 27.5%. While a company pays tax from the first dollar of profit, the tax rate is capped regardless of how high the profits are.
For more information contact us at email@example.com and contact either me Barbara Keating or one of our experts will be more than happy to help.