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Daniel
Daniel, Solicitor
Category: Australia Law
Satisfied Customers: 5779
Experience:  Bachelor of Laws (dist) Graduate Diploma in Legal Practise. Admitted NSW Supreme Court / High Court
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I want some advice on setting up a company, My boyfriend and

Customer Question

I want some advice on setting up a company
JA: The Expert will know how to help. Please tell me more, so we can help you best.
Customer: My boyfriend and I want to open a company, I will hold the director title and he will be an employee which I will pay him a wage, We will invoice his current employer and become a contractor
JA: Is there anything else the Expert should be aware of?
Customer: My boyfriend is in Bankruptcy which is why we want to set it up this way as he can't be a director of a company, I will basically do all the invoicing and book keeping and order the clothing for the contractee, but he of course will be doing most of the work and hours of 40 hours a week
Submitted: 1 month ago.
Category: Australia Law
Customer: replied 1 month ago.
We will be invoicing the company (his current employer) monthly for around 140k per year. We plan to use the 140k on business expenses, personal expenses and paying him and myself a wage. The company wont exactly make profits because we use all that money currently to live off.
We want to know if we are allowed to set this up this way, what are the risks, and will we be paying high tax or PSI tax?
Customer: replied 1 month ago.
This is in Australia right?
Customer: replied 1 month ago.
Or would setting the company up as a sole trader be a better and easier option ?
Expert:  Daniel replied 1 month ago.
Hello
Well the issue is, your not friend will be taxed as he is just an employee, it will attract a tax for his income.He iscan employee, not a company / business owner, well not on the books anyway.Otherwise, what you propose, buying anything else, writing stuff off, paying for most of your items so it runs at a loss works and is legal.My only suggestion is to pay him a low salary so not to attract too much tax and work a way to have you both benefit that way.Please click accept and rate my service (with the stars). I am able to answer further questions after doing so at no further cost
Expert:  Daniel replied 1 month ago.

Hello
I note I have not received a response?
I wish to help you in this situation.

Please click accept / rate my service (WITH THE STARS). I am able to answer further questions after doing so at no further cost to you

Customer: replied 1 month ago.
Hi there, I need further advice I don't feel it's answering my question yet
Expert:  Daniel replied 1 month ago.

Hello what further assistance do you need?

Expert:  Daniel replied 1 month ago.

Hello
I note I have not received a response?
I wish to help you in this situation.

Expert:  Daniel replied 1 month ago.

Hello
I note I have not received a response?
I wish to help you in this situation.