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Set up your company with TMS Financials

When you’re considering setting up a company, it’s essential to be aware of the specific legal and tax requirements involved. These include lodging an annual tax return with the Australian Taxation Office (ATO) to report your company’s income, expenses, and investments. This information helps the ATO determine your tax obligations.

At TMS Financials, we support you through every stage of establishing and managing your company. We help ensure your business adheres to the Corporations Act and ATO guidelines, from registering your company and acquiring an Australian Company Number (ACN) to handling your ongoing business structure and compliance needs.

Our aim is to help your company fulfill its legal and tax duties so you can concentrate on expanding your business. We handle the complexities of legal compliance, enabling you to focus more on your business operations and growth.

Why choose TMS Financials?

Company Registration and Structure Guidance

Starting the process of company setup involves choosing the right business structure, like a proprietary limited company or a public company, tailored to your specific business needs and objectives. We assist you in understanding the variations between these options and navigate the registration steps with the Australian Securities and Investments Commission (ASIC). This includes securing an Australian Company Number (ACN) and registering your chosen company name. We make sure your company meets all legal requirements under the Corporations Act, effectively establishing your business as an independent legal entity.

Legal Compliance

Ensuring compliance with legal standards is essential for the success and legitimacy of your company. We guide you in establishing your company as a legal entity, making sure it adheres to the regulations set by the Australian Business Register and the Australian Taxation Office (ATO). This includes registering for the Goods and Services Tax (GST) when necessary. We also assist in drafting your company constitution or adopting replaceable rules, based on your preference.

Director Identification Number (DIN)

Our services cover advising you on your duties as a company director and officer, which includes securing a Director Identification Number (DIN) and understanding your personal liability concerning the company’s debts.

Lodge your Trust Tax Return with TMS Financials

Our team at TMS Financials specialises in providing personalised tax solutions tailored to your unique situation. We can help you navigate through the complexities of tax planning, identify the most effective strategies for your situation, and ensure you maximise your tax savings.

We’re an Australian tax accounting firm with 30+ years of experience serving business owners and investors. Our reputation for reliability and exceptional client service is built on providing accurate financial advice and asset protection. We remain committed to serving our clients with integrity, professionalism, and quality, and have the expertise to help you succeed.

TMS Financials is online now

We are a Sydney based tax accounting firm servicing clients Australia wide online since 1993

Eng Sivieng

Principal of TMS Financials

We strive to build long-term relationships with our clients and to be a trusted advisor for all their financial needs.

Registered Office and Annual ASIC Statements

Once your company is registered, our support continues with the setup of your registered office address, management of company documents, and the establishment of bank accounts. We inform you about the applicable company tax rates on your generated income and offer advice on capital raising strategies. Additionally, we ensure that you fulfill other legal obligations, such as submitting annual statements to the Australian Securities and Investments Commission (ASIC). If your company structure includes roles such as directors or a company secretary, we provide detailed guidance on the responsibilities associated with these positions.

Steps on How to Register a Company with TMS Financials

Propose a Company Name

Start by choosing a unique business name and verify its availability via the ASIC website.

Obtain a Director Identification Number (DIN)

All directors must obtain a Director Identification Number (DIN) before registering their company. You will use the same DIN across any companies you are involved with. For more information about obtaining a DIN, please refer to our detailed article.

Register with ASIC

Prepare and submit necessary details such as the company name and addresses. Organise all essential company records and documents required for registration.

Create the Company Constitution

Choose between replaceable rules, a custom constitution, or a combination of both, depending on the specific needs and future plans of your company.

Apply for TFN, ABN, and GST

Apply for a Tax File Number (TFN), Australian Business Number (ABN), and Goods and Services Tax (GST) registration if you expect your business to earn over $75,000 in its first financial year. These are critical for tax compliance and to begin business operations.

Open a Business Bank Account

Set up a dedicated business bank account to separate your company’s finances from your personal finances, which simplifies financial management and reporting.

Why Setting Up a Company is Beneficial

Choosing to establish a proprietary limited company in Australia, rather than operating as a sole trader, can offer notable advantages, particularly concerning asset protection and taxation. As a distinct legal entity, a company ensures your personal assets are secure from any business debts, which is crucial during financial setbacks. Sole traders are personally liable for all business obligations, which might expose their personal assets to risk.

In terms of taxation, companies benefit from a consistent corporate tax rate, which can be lower than the progressive personal tax rates faced by sole traders as their income grows. This company structure can potentially provide substantial tax savings as the business develops.

Furthermore, a company structure allows for more flexibility in terms of growth and exit strategies. Unlike sole traders, companies can issue shares to attract investors, facilitating capital raising efforts. Transferring ownership is more straightforward since the company is recognised as its own legal entity. This setup not only makes it easier to raise funds but also simplifies the processes of transitioning or exiting the business.

Advantages with partnering with TMS Financials

Protection from Personal Financial Loss

When you establish a company with TMS Financials, it’s treated as a separate legal entity. This means that shareholders (the owners) are generally not held personally responsible for the company’s debts, safeguarding their personal assets. It’s important to remember, however, that there are exceptions, such as when personal assets are used as collateral for business loans.

Potential Tax Benefits

A company is taxed at a corporate tax rate, which can be more favorable compared to individual tax rates, particularly as business income grows. This arrangement can result in tax savings, though it’s important to note the corporate tax rate applies to all income from the outset.

Establishing a company also entails significant responsibilities. Directors and officers of the company must adhere to specific regulations under the Corporations Act to ensure legal operation. They’re required to act in the best interests of the company, and failure to meet these obligations can lead to penalties from the Australian Securities and Investments Commission (ASIC).

These points illustrate that while setting up a company with TMS Financials can provide considerable financial protection and potential tax advantages, it also demands diligent management and strict compliance with legal requirements.

Next step is to contact TMS Financials

TMS Financials provides you with a team of experienced professionals that help you achieve your financial goals through smart tax structures and strategic financial structuring. We’re a one-stop shop for all financial needs and pride ourselves on building strong partnerships with our clients.

Book a free financial health review to see the difference we can make in your financial future.

Disclaimer

This outline is for general information only and not as legal, tax or accounting advice. It may not be accurate, complete or current. It is not official and not from a government institution. Always consult a qualified professional for specific advice tailored to your unique circumstances.

Contact us today for a consultation.

Contact us today to learn more about how our accounting services can benefit your business. We look forward to hearing from you and helping you achieve financial success!

Set up your company today

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