WA New Business Setup Help

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Resinate87

Member
13 September 2014
3
0
1
Hello. I'm going to try start a new company soon. It will be providing a service that is fulfiled by a third party contractor, but also be a fund holding account for future works.

Is it legally possible under commercial law to setup up a company like a corporation for this type of service? Can anyone give me more information on company registration and its operating needs? Also, some general business start up advice would be great.

I will be the sole owner of the company.

If there is anything else you need to know let me know.
 

Tim W

Lawyer
LawTap Verified
28 April 2014
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748
2,894
Sydney
Are you an agent, or (in effect, even if not called such) a dropshipper?
 

Worldly1

Well-Known Member
25 April 2014
137
29
454
Australia
Hi Daniel,
You can do so as a company - if its just you, you can set up a proprietary limited company (you get an ACN) with you as the sole director and secretary. See Register a Company in Australia with Incorporator.

ASIC has a wealth of information about starting and running a company, including compliance obligations. Once you get on top of the information, you can follow the process and comply.

What 'services' are being provided? Depending on the answer, there might be some other things to think about.
 

Sarah J

Well-Known Member
16 July 2014
1,314
250
2,389
Melbourne, Victoria
Hi Daniel,

There are essentially three different types of business arrangements: 1) sole proprietorship; 2) partnership; 3) company. Within each type, there are sub-types.

If it is just yourself in the arrangement, 1. and 3. will be suitable. Choose 1. if you want a cheaper, less complicated arrangement. Choose 3. if you want to raise funding (i.e. raise a floating charge from a bank in exchange for borrowings), wish to expand in the near future, foresee debts or liabilities or risk thereof and wish to protect your personal assets from that of the company. A company has separate legal personality, meaning creditors of the company cannot chase you for your personal assets/property should the company default or run into legal liability. However, a company is more costly, has regular accounting and reporting requirements that could get quite complex, require more complicated setup and maintenance procedures and is more public, in the sense that certain information used to incorporate will be publicly available for viewing (e.g. your name, your company address, company filings).

It really depends on what you are most concerned about at this stage of the arrangement and what you can afford.
 

Resinate87

Member
13 September 2014
3
0
1
Thank you for the help so far
next question is it easy to change a sole proprietorship to a company in the future
or be better of to just leave it with the one from the start

a company seems the best but i don't have the funds to be able to setup yet
I understand i will need more people to do a company but the fact that is cant come back to bite me sounds good
 

Sarah J

Well-Known Member
16 July 2014
1,314
250
2,389
Melbourne, Victoria
Yes, it should be quite easy to switch. Switching is essentially creating a company down the track and transferring all your business information from sole proprietorship to company (i.e. business website, business card to include ACN instead of ABN).
 

CAS

Member
17 November 2014
3
0
1
Not knowing your expected profits, your need for limited liability, your business experience, marital status etc, a sole trader settup would most likely suit your needs. Whilst company profit is taxed at 30 cents to the dollar (feasible option if you're thinking you will profit more than the highest individual marginal tax bracket) and the company itself becomes a separate legal entity meaning it can be sued and sue in it's own right, leaving private assets protected (although can get messy), there are however, Division7A matters to consider in which taking money from the company can too become messy and you will most likely find your accounting fees will rise considerably, plus the costs of the maintenance of your corporation (ASIC fees and correspondence).

All in all, I do agree with a comment made above, go see your accountant, you carnt put a price on quality advice.

Best of luck.