Taxation answers with Roy Sanderson of RJ Sanderson and Associates, Dandenong.
I currently work for an employer, but in the next couple of months I want to start my own business and set up a company. How do I set up a company and how much does it cost?
Most accountants and solicitor set up companies on your behalf.
They will organise all the paperwork with ASIC and present you with a folder with many places for you to sign. The costs are normally between $1400 and $1600 depending on which firm you use. This includes the ASIC cost, which was reduced by $400 on 1 July. This means all company incorporation costs will reduce by $400 from this date. If you use a reputable firm, for the price quoted above, they will not only set up the company but also arrange a company tax file number, GST registration, Australian Business Number and WorkCover registration.
They will also spend time with you to ensure you understand the requirements of superannuation and have a procedure on computer or manually to complete the bookkeeping and reporting requirements. It may sound like a lot but a professional firm will walk you through all the legal requirements.
