If you are into a business, there are many reasons to form a corporation or a Limited Liability Company (LLC) in Australia. For that, you can either choose Incorporate Australian company services or consult an accountant. But why to incorporate your business?

The benefits of developing a corporation are:

Personal assets protection: If you develop a corporation for your company, rescuing your assets would be more manageable. Whereas, if you are operating as a sole trader and someone brings a successful lawsuit against your company, your assets could be at risk. In that case, you may go through an unbearable loss! But, if your company has a proper structure like a corporation or LLC, which is appropriately managed, you’ll have additional protection benefits. It will ensure that your assets are secure and are separate from your business debts.
Tax flexibility- The best thing about corporations or LLCs is that they enjoy tax and savings benefits usually inaccessible to sole proprietors. But, it is always advised to speak to your accountant first to find out what tax rules apply to you.

How to start a corporation? 

A corporation is a type of formal business structure, which is more complicated than an LLC. Corporations, though complex, provide certain benefits that LLCs don’t. You can choose to incorporate your business if you want to raise money from venture capital or looking to record on a stock exchange. If you have just started a business and are unsure which business structure is suitable for you, you can hire an accountant or a provider to help you find one.

What are the steps for incorporating a company? 

• Choose and secure your corporation’s name- The name you decide for your corporation is significant because it is the first point people will see about your organization. However, there are specific facts that you must know before choosing a name for your corporation. Your title should have the words “corporation,” “company,” “incorporated,” “limited,” etc. It would be best to keep in mind that your name cannot include words that confuse your corporation with the government. Once your name is selected, ensure whether it is available.
• Choose a registered agent- If you want to register your corporation with Australia, you must choose a registered tax agent. You can hire a professional service allowed to perform business in Australia. They will work on legal papers and perform the documentation process on your behalf.
• Hold an organizational meeting- The next important step for starting a corporation is the corporate meeting. Through the forum, you need to create bylaws, choose your directors and shareholders, determine your share structures and execute an incorporation statement to complete the process.
• The incorporator should sign on the incorporator statement with full name and address and store it in the corporate records book.
• File formations document- After you have filed the formations document with Australia, you are ready. Once the government approves the documents, you are officially an Incorporate Australian Company.
• Employer Identification Number- last, you need to regularly get an EIN from the Australian Taxation Office for lodging tax returns. It is a social security number for your corporation. Registering with the ATO is crucial as the ATO tracks your tax business. You must also possess an Australian Business Number (ABN) and a Tax File Number (TFN), depending on the structure of your corporation in Australia.

If you need any help regarding this, you can seek our assistance.