PT_Bear
26-09-2004, 09:21 PM
I'm starting my own business and I figure the best way to set it up is a Pty Ltd company.
As I expect the business to be making a profit within the first year, what are the implcations for the profits it makes. My accountant says that the company has to distribute the profits to either shareholds or benificiaries each year - the ATO is starting to enforce this.
Thus he recommended that my trust become a benificiary of the company so I've got more flexibility in how the funds are distributed. I asked about the asset protection of the properties I've got in the trust. The accountant said that if I have proffesional indemnity insurance, it'll be ok - this is a bit worrying.
Do I need to distribute profits made by a company?
How is it that companies can thus build up a cash reserve?
Is this the best sort of structure to set up?
How do people set up their own business structures?
As I expect the business to be making a profit within the first year, what are the implcations for the profits it makes. My accountant says that the company has to distribute the profits to either shareholds or benificiaries each year - the ATO is starting to enforce this.
Thus he recommended that my trust become a benificiary of the company so I've got more flexibility in how the funds are distributed. I asked about the asset protection of the properties I've got in the trust. The accountant said that if I have proffesional indemnity insurance, it'll be ok - this is a bit worrying.
Do I need to distribute profits made by a company?
How is it that companies can thus build up a cash reserve?
Is this the best sort of structure to set up?
How do people set up their own business structures?