So, you are thinking of starting a business, are you?
Is it time to turn that hobby into a money-making enterprise? Or perhaps you have decided that you no longer want to be an employee, but go out on your own and work for yourself or set up your own team?
No matter what your motivation for starting a business, you need to make sure that you get out of the starting blocks strongly and are heading in the direction of growth, success and profit. After all, you should be thinking about this venture as a way to make a living, provide for your family and set yourself up for a strong future.
No doubt you would have thought about the costs involved with a business start up, but have you really thought through the appropriate structure for the business?
Depending on whether you are going into business alone, or in partnership, the way in which you structure your business will be critically important as to how you can operate, how much tax you pay, and whether you have your personal assets and investments protected should something go wrong.
The IRD offer advice and support for those embarking on the research phase: (http://www.ird.govt.nz/yoursituation-bus/ ). This information is a great base for those who need to get their heads around their options.
We would strongly recommend using this information as a base and engaging the professional services of experienced accountants to help you work out the best options for business and tax structures. Every option has pros and cons and it really comes down to defining your product/service, expected sales and profit, expected number of employees, business growth plans, personal financial position and whether you will be setting up in partnership with anyone else.
- Sole trader –
- Partnership –
- Limited partnership –
- Company –
- Look Through Company –
- Non-profit organisation –
The team of expert accountants at Marley Loft can walk you through your options. Based on your current and future business plans, and personal financial situation, we can advise you as to the most appropriate business structure. We also provide you with details of the necessary registrations and licences required. This advice is invaluable at the start of the process and may save you significant time, money and heartache later on.
One of the most important considerations when going into business is protecting your personal assets. A dedicated accounting partner can provide you with advice regarding the establishment of a Trust in order to protect your home and chattels.