Does anyone know if you can operate your home based (doesn't have to be home based I suppose) business through a Family Trust? I don't know if the business would have to be registered as a sole trader/partnership/pty ltd. Does anyone know that too?
Sorry, they are pretty vague questions, I hope they make enough sense.
I am thinking of starting a home business, and just wanted to try and get some basic answers to some of my questions before I go out ad try and find a accountant (I don't have one! Very )
I know that if you run a home based business, that you can claim a HEAP of things back on tax. Just wondering if anyone has had any experience/knowledge with family trusts. We are also really thinking about setting one up for the Man to get paid through.
My DH is self employed working as a Mobile Mechanic and we run the business as a family trust. I dont know all the details as thats not my dept iykwim but i know for sure we run using a trust.
Pretty much what type of business you run under depends on what is best tax wise for your family and that can only be discussed with an accountant.
For day to day stuff the business just runs the same way pretty much depending on whether you pay GST or not, or have employees. It is how you pay yourself, how the business income is taxed, insurance and workcover that will differ depending on your structure. That can also depend on what state you are working from.
Check with your accountant what you can claim when running a business from home, don't even think of claiming mortgage payments for your residence as that will just raise capital gains issues later. Of course that is very different if your residence was business like a pub.
Running home business through Family Trust?
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