Proprietary Limited (Pty Ltd) companies are the most common business structure used by small business owners in Australia. There are several advantages to registering a company, including limited liability for directors, fixed tax rates, the ability to transfer ownership, and more.
Advantages of a Pty Ltd Company
- Limited Liability for Directors: One of the most significant benefits of a Pty Ltd company is limited liability. The directors are not personally liable for the company’s debts or legal obligations.
- Low Cost of Setup: It does not cost too much to set up a Pty Ltd company, making it an affordable option for small business owners.
- Fixed Company Tax Rate: The company tax rate is fixed and can be more favourable than the personal tax rate, providing potential savings.
- Franking Credits: Company tax paid becomes franking credits, which can be claimed back from the Australian Taxation Office (ATO) in the future.
- No Trading Location Restrictions: There are no trading location restrictions for a Pty Ltd company in Australia, providing greater flexibility for the business.
- Running Multiple Businesses: A Pty Ltd company can run multiple businesses, allowing for the consolidation of business operations.
- Transferring Ownership: The ownership of the company or business can be transferred by transferring shares.
- Employment of Family Members: Family members can work for the company, providing potential tax benefits.
- Loan Application Purposes: Company profits can be used for loan application purposes, providing greater financial flexibility.
- Corporate Guarantee for Business Lending: A Pty Ltd company can provide a corporate guarantee for business lending, enhancing the ability to secure financing.
- Land Tax Rate: The land tax rate for a Pty Ltd company is the same as individuals’ in Victoria & ACT etc, providing potential cost savings.
Company Tax Return Services Provided by Gavin Ma & Co.
At Gavin Ma & Co, we provide a range of tax return services for companies, including:
- Preparation of Full Financial Reports: We prepare a full set of financial reports, including balance sheets, profit and loss statements, notes to financial statements, depreciation reports, tax reconciliation reports, director loan reconciliation reports, and Division 7A loan agreements.
- Preparation and Lodgement of Company Tax Returns: We prepare and lodge company tax returns on behalf of our clients.
- Preparation and Lodgement of Business Activity Statements: We prepare and lodge quarterly or monthly Business Activity Statements (BASs).
- STP Lodgement and Superannuation Calculation: We provide STP lodgement services and superannuation calculation and payment advice.
- Financial Analysis and Advice: We analyze the financial information in the company tax return and provide advice on tax planning, cash flow management, business growth strategy, and risk management.
Costs of Completing a Company Tax Return
The costs of completing a company tax return can vary based on the complexity of the tax return. At Gavin Ma & Co, we offer a fixed-price quote for preparing the company tax return after discussing the requirements with our clients.
At Gavin Ma & Co, we offer our expert accounting services to businesses located in Bentleigh and surrounding suburbs like Brighton, Moorabbin, McKinnon, Caulfield, and Oakleigh. However, we don’t just limit ourselves to these areas. We have a national reach and can assist clients across greater Melbourne with all of their accounting needs. No matter where your business is located, we can help you manage your financials and ensure you are meeting all of your accounting obligations. Contact us today to learn more.