Asset Protection
Why consider asset protection?
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With the advent of increasing litigation combined with the failure of some insurers, individuals must consider the most appropriate means of holding their assets in order to protect them from those who might seek to be unjustly enriched by them. We do not promote strategies to avoid payment of those to who you legitimately owe money. Rather we invite you to consider steps that you can take to protect your hard-won assets from those who may seek to use the legal system unjustly against you. |
Business by a company rather than sole trader?
Carrying on business in your own name is simple or so it seems.
If you are trading in a name other than your own you will need to register a business name.
If you are trading as a Company you can just trade in the company name (e.g. XYZ Pty Ltd), without having to register a business name as well.
As a sole trader you are personally liable for all of the debts and liabilities of the business. This means that your other personal assets are exposed.
If you trade via a company, the company is liable. There are a few exceptions to this rule but this is the basic rule.
Trading via a company, means that after you have paid yourself a commercial wage, the rest of the profit is taxed at the corporate flat 30% tax rate not potentially higher marginal tax rates.
Trading via a company means that there is another Tax Return to lodge, an annual fee to ASIC to pay and company records to be maintained. This is not rocket science.
| Sole Trader | Company | |
| Business Name registration | Yes (if a name other than your own) | No (if you trade in the company name) |
| Personal Asset protection | No | Yes (with some exceptions) |
| Flat 30% tax rate | No | Yes |
| No ASIC reporting | Yes | No |
