Hi all,
Im setting up my own architecture business soon.
I was thinking of setting up a Discretionary Trust for this, but as I try to think about who I could distribute profit to, there's nobody I can...
1. I have one sister earning about $40,000 a year. I guess that means she's already near 30% tax bracket.
2. I have another sister who is a single mother working part time and partly on social security for her child, so I don't think I could distribute to her.
3. All my other relatives are overseas... (Witholding tax if I distribute to them?).
4. I do think about if I get married one day and have kids in future, thenn the trust may come in useful.
Because of this, I am now considering using a PTY LTD instead. More straightforward?
1. CHeaper accountant fees each year?
2. No set up cost for trust
3. My sister helps me with admin, filing, bookeeping, so I could pay her via my company to reduce profit.
What do you think? Any comments or points to consider?
Im setting up my own architecture business soon.
I was thinking of setting up a Discretionary Trust for this, but as I try to think about who I could distribute profit to, there's nobody I can...
1. I have one sister earning about $40,000 a year. I guess that means she's already near 30% tax bracket.
2. I have another sister who is a single mother working part time and partly on social security for her child, so I don't think I could distribute to her.
3. All my other relatives are overseas... (Witholding tax if I distribute to them?).
4. I do think about if I get married one day and have kids in future, thenn the trust may come in useful.
Because of this, I am now considering using a PTY LTD instead. More straightforward?
1. CHeaper accountant fees each year?
2. No set up cost for trust
3. My sister helps me with admin, filing, bookeeping, so I could pay her via my company to reduce profit.
What do you think? Any comments or points to consider?