The Australian Securities and Investments Commission (ASIC), the Australian Taxation Office (ATO) and the Department of Industry and Science have released a suite of new online resources to help small business operators make key decisions regarding the running of their businesses.
These resources have been developed as part of a joint agency initiative called the Small Business Fix-it Squad, where a variety of government agencies work closely together with small business to reduce the burden of red tape and make it easier for them to operate.
One of the most common issues faced by small business owners is whether to set themselves up as a sole trader or a company. This is a matter that is sometimes considered due to the growth of the business.
Either way, it’s important to make the right decision as there are different tax obligations, levels of administration, compliance and personal responsibilities, depending on which structure you adopt.
The toolkit provides comparison charts, fact sheet summaries, key reminders and videos which explain the key differences between operating as a sole trader and a company and how to change business structures.
Visit business.gov.au/soletradertocompany for further information.
ASIC has also released a new guide for small business directors tailored to meet the needs of small business owners/operators who choose to run a company. The guide covers important topics such as:
- what it means to be a company director
- how to become a company director
- directors’ key responsibilities
- directors’ liabilities when things go wrong
- how to resign as a director.