re buisness

[Emo21]

my wife is considering starting her own cake buisness, now i am wondering can i start the buisness in my name and employ her and use any losses against my investment profits and income i earn through my main employment.

 

[Aaron_C]

...so your question is can you start the business in your name (sole trader), then pay her a wage, and if your business makes a loss can you write it off against your PAYG income?

 

[Rolf Latham]

my wife is considering starting her own cake buisness, now i am wondering can i start the buisness in my name and employ her and use any losses against my investment profits and income i earn through my main employment.

Losses : (

not a good place to start

ta
rolf

 

[coastymike]

You will need to consider non commercial loss provisions before this question can be answered. Number of tests that need to be passed before the losses can be utilised.

 

[Pa1nter]

Is it just me or does this spelling ( buisness) bother anyone else???

 

[geoffw]

Is it just me or does this spelling ( buisness) bother anyone else???

We've had discussions about spelling before. A lot of people are a lot worse.

Let's keep on topic.

 

[CHAOS]

Agree with the spelling - I am a competent speller but a dyslexic typist.

 

[moyjos]

Maybe a partnership might be better? One of our businesses is a partnership (we both have sole trader bus as well )between hubby and I and at the end of the year Tim the wonder accountant assigns profits where they are most beneficial.

If the cake bus was in your name only you would have to pay wife award wages, super, work cover etc etc etc. a partnership between you and her circumvents this. Check with your accountant before registering for the ABN

 

[Sean M]

Don't go into business with the view of making a loss.

Speak to an accountant about structuring the business so you/ your wife can claim losses appropriately if and when they do occur.

 

[coastymike]

Tim the wonder accountants allocates profits as beneficial to the partners for a partnership ? Hmmm out on the run but will later post some reasons why this is a problem. Not that wonderful an accountant at all.

 

[moyjos]

Tim the wonder accountants allocates profits as beneficial to the partners for a partnership ? Hmmm out on the run but will later post some reasons why this is a problem. Not that wonderful an accountant at all.

mike .. Hubby and I are the partners in the mentioned partnership....Sometimes his sole biz makes more...sometimes mine makes more.... So the partnership profits get split between our income where it fits best.

You would certainly not allocate profits to the the benefits of partners in a "non co-habitating" partnership

 

[geoffw]

Moyjos- would a trust work better for what you want to do here?

I'll let the experts tell me why that's not so good an idea