If you're planning to start a small business, it is important that you must understand the taxation of businesses. Tax accountants can help you with the tax aspect of building your business. It is important that you file your return on time and accurately maintain compliance and avoid costly penalties.
It is simple and easy to start a business. You only need a business license if you create a limited liability company, and when your business is really small, you exempt from VAT. However, limited liability company or not, small businesses or large, you are required to file reports annual revenue. Again, the tax rate on corporations is already minimal, but you may ask for the advice of levy accountants in Point Cook on tax-efficient structures that can work for you.
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Regarding domestic taxation, if you own a non-resident company, you are better in a way because you are only taxed on the basis of source of income in the country of choice. However, this means that your company does not have a permanent or a fixed address, which could be a turn off to some customers.
Having sorted the tax structure at the beginning you can see through the tax jungle. At first glance, the system may seem simple, but in truth, it is full of complexity. The tax rates depend strongly on how your small business was created. Individual traders are charged more limited liability companies, and this might require you to form a limited liability company.
Business taxation becomes much more complicated if you take on employees. You must calculate and deduct the tax due on your staff salaries based on the pay-as-you-earn or PAYE. Although there are government incentives for the employment of people, always consider your first business needs. If you need more hands to be productive, consider hiring contractors. Files and contractors pay their own income tax returns.