Sole traders wishing to operate in a name other than their personal name must register their business name with the ATO.
A sole trader is one of the least expensive and simplest business structures. However, as a sole trader, you are entirely responsible for all aspects of your business, including debts, losses, and business decisions.
This can be a lot to manage in the context of also performing your billable work. A sole trader accountant in Australia can lessen your stress by:
A sole trader is an enterprise owned and operated by one person, for one person. Sole traders are legally responsible for profits, losses, debts, and taxation.In this structure, the person and business are indistinguishable from each other, meaning that sole traders are the business. But as a sole trader, you can still hire people.
Examples of sole traders include tradespeople, freelancers, and other kinds of independent contractors. If you want to restructure your business as a sole trader, get in touch with our team for more information.
There are several responsibilities that a sole trader must be aware of before going into business for themselves.
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Clear Tax offers accurate and impartial support, advice, and services for sole traders. We’ll work with you from the outset to ensure that your business is structured to maximise your tax position and lower the tax you pay. We’ll help you understand all of your responsibilities, and get you every deduction that you’re entitled to.
Get in touch with our Not For Profit expert accounting team today to find out how we can help you!
There are several things you need to consider before restructuring from a business or company to a sole trader. For example, you may need to cancel and reapply for your ABN. You must also consider how your restructured business will affect your business and clients. At Clear Tax, we want to help you understand what this change means for you.
The biggest difference between sole trader and company taxes is the rate. Sole traders pay tax using a sliding scale, which is the same as the personal tax rate. Company taxes are levelled at 25% for companies who turnover under $50 million each year.
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