Five Things to Keep in Mind about Tax and Running a Small Business
There are four ways you can structure your business affairs. You can operate as a sole trader, partnership, company or trust. Each structure may have certain features that may appeal to you, so it’s best to seek advice from a qualified professional before committing yourself.
Complex tax rules apply if you operate as a sole trader, partnership, company or trust. You could qualify for certain tax concessions if you run a small business.
If you’re registered for GST you must collect 10 per cent tax on taxable sales from your customers or clients. The amount needs to then be remitted to the Tax Office.
Employers may be liable to pay FBT on certain benefits provided to employees. It’s important that you understand how the system works and be able to identify whether a particular fringe benefit is taxable or exempt.
Under the CGT concessions for small business, you may qualify for CGT relief on disposal of certain active business assets. There are four different CGT concessions you can use to gain CGT relief, but there are strict rules you need to satisfy before you can use them.