Is maintaining a "Company" structure in Australia really that difficult and expensive?
I'm about to start my own business and I've been researching the different business structures to choose from.
To start with, this company will be very small (home based) and there won't be any money being made for quite some time... could even be up to a year at the most before we start seeing a penny. However, in my plans it will become a lot bigger and start generating money eventually.
There are two of us involved and to start with a Partnership would have been good but in my research I see that it is quite difficult to change the structure and that you are best to choose the correct structure from the beginning. I would eventually see it being more suited to a "Company" structure in the long term which is why I want to register the business as a Company right from the start.
I've done a fair amount of research online and I don't see much 'actual' information about exactly what reports you are required to provide on a periodical basis with the company structure. All I keep reading is that it is "expensive" and "complicated" ... as far as I've seen so far there is just an annual report (usually due on the anniversary of the date you registered the company) and that it cost about $500 to set up... to me that doesn't sound complicated or expensive. Maybe it just becomes more complicated once you actually start making profits and claiming expenses against the company etc?
To begin with - I won't really have much expense and all the capital will be from my own personal funds.
Would love some advice either here or where I might be able to find it for myself with more detail. I want to make sure that I am ready to take on the responsibility of a company structure even though I am still starting out small.
- JasonLv 78 years agoFavorite Answer
in terms of cost and ease of a partnership vs incorporation
I would take incorporation
with a partnership you would still want a lawyer to draft a decent agreement - anyone who thinks contracts arent important doesnt appreciate what humans are
costs associated with establishing a company arent great and compliance is hardly difficult
grab a decent accountant and before you know it youll be on your way
that same accountant can help you navigate your obligations