Company ACN + ABN
Straightforward company registration with ASIC for an Australian private company + ABN registration
A
Company ACN + ABN
$
837.00AUD
(One time cost)*
Package Inclusions
- ACN Company Registration
- Downloadable Company Register incl ASIC Certificate, Opening minutes, All registers, Company Constitution, Share Certificates, Banking Account Opening Kit and a checklist of what documents you need to sign.
- Company ABN Registration
- GST registration
- PAYG Reminders
- TFN for Business
Extras
- 12-month access to Adminimiser (Business Dashboard)
- Registration renewal reminders
- Secure online business document storage
What it means to be a company
This is probably the most recognisable business structure. A company operates as a completely separate legal entity, distinct from its owner. The shareholder/s own the company, the director/s govern the company’s activities and, as owner, you could wear both these hats. Expect extensive ongoing admin and regulation but also some good tax breaks, and limited personal responsibility for any liabilities, like company debts.
Compare Business Structures
What's The DifferenceCompare Business Structures
Company
Sole Trader
Partnership
Ownership & Profits
A company is owned by shareholders, and run by directors - both could be you. Profits are shared.
You get total ownership and control of the business, and its profits.
Partners own and run the business together. You get joint control and profits.
Setup & Paperwork
Increased tax and legal formalities = more complex set-up process and ongoing paperwork.
Easy to set-up, simple to run.
Few tax and legal formalities = relatively simple to set-up and run.
Compliance
High levels of regulation, with additional record-keeping requirements and other obligations.
Less formal or legal processes, with little ongoing red tape.
Less formal and legal processes, with little ongoing red tape.
Liability & Risk
Your liability is usually limited to your ownership share. Increased protection from risk to your personal assets.
You’re personally responsible for all debts incurred by your business, putting your personal assets at risk.
Partners responsibility for all debts incurred by the business (regardless of ownership share) putting your personal assets at risk.
Setup Cost
A company can be expensive to establish and maintain.
Establishment costs are low.
Establishment costs are low.
Raising Capital
Easier to attract funding and investors. Wider capital-raising opportunities.
Your ability to raise capital is limited.
You have greater borrowing capacity.
Tax Basics
Your personal income is taxed lower than the top personal tax rate. The company submits its own tax return, with good tax breaks to be had.
Your net profit is taxed at individual rates, or your overall income tax is calculated at personal rates.
You are taxed as an individual on your income from the partnership, but the business will also need to lodge a separate partnership tax return.
Pro's and Con's of being a ACN + ABN
Get excited about:
- Reduced personal responsibility for business debts and other liabilities
- Easy to raise capital / investor interest
- Flexible business management style
- Flexible distribution of profits (can be reinvested in company, or paid out in dividends)
- 30% company tax flat rate + company tax credits + good tax deductions
- A company is easy to sell or pass-on
But keep in mind:
- Increasingly, lawmakers are holding company directors responsible for liabilities
- Lenders will often ask you for a personal guarantee
- High level of compliance paperwork + ongoing record keeping
- More complicated set-up / establishment processes
- High operational costs