Creating a Company for an Ecommerce Brand/Site - Shopify

EM36 on 26/06/2023 - 14:23

Hi,
I would love to get some insight from people who have done it already.

Currently running ecommerce storing doing 4 figures a month - started it just recently

However would like to know the rough costs and recommendations to where i should open a company for it for tax + income/profit
- Ive seen some recommendations to do it through an accountant etc
- Advice? Price? - ive seen it range between $500-600
- At what amount of revenue/profit would it make sense to register the company etc for tax benefits

Thanks in advance

Financial

Comments

  • CodeXD on 26/06/2023 - 14:47
    +1

    All of that info should have been in the business plan/proposal before you start a business…

  • Ramennightmare on 26/06/2023 - 16:14

    • Ive seen some recommendations to do it through an accountant etc
      If you are going full time, it is always great to have an accountantant to look after the tax and bookkeeping side of thing.

    • Advice? Price? - ive seen it range between $500-600
      Setting up company by yourself can be easy via cleardoc or easy companies. Should be around 500 to 600.

    • At what amount of revenue/profit would it make sense to register the company etc for tax benefits
      Depends on many factors:
      1) Are you going to sell the business down the road?
      2) What is your personal income tax level? if under 45k, you are being tax at 19% plus 2% medicare. For company, it is 25% for base rate entity now.
      3) In reation to point 2, if your annual turnover is over 75k, you will be required to register for GST.

  • AustriaBargain on 26/06/2023 - 18:21
    +1

    Four figures a month, may as well just be a sole trader and register voluntarily for GST. I've seen loads of small businesses, restaurants and takeaway, that are sole traders. There's no shame in it.

    Though you may enjoy the experience of registering as a company.

    • EM36 on 26/06/2023 - 18:24

      I think the main thing that stopped myself from going as a sole trader is personal liability.

      With business, my personal assets would be separate from business and vice versa.

      Etc?

      So im waiting for turnover to go up to make the switch to company more worthwhile?

      • AustriaBargain on 26/06/2023 - 19:14
        +1

        You could just get adequate insurance. Which you should have no matter your business structure.

        The fees for becoming a business aren't too high, a few hundred like you say. It's more the bother.

        • EM36 on 26/06/2023 - 20:10

          Appreciate it

        • ar7ist on 28/12/2023 - 20:56

          You mean getting insurance for a sole trader business in order to protect personal assets?

          • AustriaBargain on 28/12/2023 - 22:49

            @ar7ist: Yes, if your business gets sued as a sole trader then the liability isn't limited to your business. They can come for your house, your bank account, your Playstation. But insurance doesn't cost all that much.

            • ar7ist on 29/12/2023 - 08:21

              @AustriaBargain: I remember you had a post for starting a business some time ago. What did you end up going with? Sole trader or a company?

              Any insurance that you recommend for a sole trader?

              • AustriaBargain on 29/12/2023 - 12:05

                @ar7ist: Yeah I'm still sole trader. Not making near enough money to need a director or anything, unfortunately. I pay $50 a month for insurance.

  • Heejag on 29/07/2023 - 20:46

    Hi EM36,

    I am planning to start my shopify store. Do you mind guide me for some info?

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