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7 Useful Tips for New Entrepreneurs.

Starting a new business can be very exciting. The entrepreneur is the “hero” of society, the one who takes the risks to make new products and innovations happen. Because what they do is unproven, entrepreneurs often make losses for a time, and in fact, are willing to do so.

However, for any entrepreneur, the ultimate aim is to make serious profits. And sadly, in their quest for profits, entrepreneurs often neglect taxation issues and make them a low priority.

Yet neglect of taxation issues is one of the biggest reasons why a business fails.

It is critical for a successful entrepreneur to get on top of taxation issues early on.

Top tax advisors and financial specialists suggest including strategies for taxation in the business systems and procedures. Here are some basic tips for entrepreneurs to keep in mind when dealing with tax.

1. Entrepreneurs get tax breaks

Under the Entrepreneur’s Tax Offset (ETO), you may claim a 25% tax credit if your business turnover is less than $75,000.

2. Start with an appropriate business structure.

As an entrepreneur, you should always make sure you set up your structure with the most tax advantages for your particular business. Avoid situations where changing your business structure later on results in more costs, such as capital gains tax and stamp duty.

3. Take time to learn the advantages given to small businesses.

Research the types of opportunities available for your chosen industry. You may be surprised by what is available to you as an entrepreneur, such as grants, export assistance, research, and development.

4. Ensure all your paperwork is well organized.

Paperwork might be the last thing on your mind or the least favorite thing you like doing in your business but it will save you a lot of trouble if you’re hit by a tax audit. The penalties for not complying can be awful, and you will spend a lot of time chasing up paperwork if you don’t have things well organized, which costs you both time and money.

5. Look at increasing your superannuation contributions

One way to slash your tax, as well as build up wealth for your retirement, is to maximize your contributions to superannuation. Superannuation is only taxed at 15% in most instances, and it also builds up a retirement “slush fund” to give your family financial security.

6. You must ensure your structure is set up correctly

Even if you have a structure, you want to ensure it is set up correctly. Ask questions such as whether the person controlling the structure (eg. trust appointor, or company shareholder) is the most appropriate, eg. if you as an entrepreneur have a spouse who is not at risk of being sued, your spouse should control the shares or the company, or be the appointor of the trust.

7. Try and make expenses tax deductible where possible

For example, if you have the opportunity to defer expenses to the next financial year, and you have made losses in your first year in business, then do it. And always make sure you keep receipts, even if you are not sure you can claim a deduction. Ask the accountant.

At Wealth Safe, we’re here to help you with all your asset protection, tax planning, business structuring, and superannuation needs. We work with you to find the best strategy to keep your assets safe, slash your tax 100% legally, and put more money in your pocket.

Please feel free to visit us on our Facebook page at www.facebook.com/WealthSafePtyLtd for more interesting articles, and tricks to reduce your tax and protect your assets.

To contact us, and get your complimentary copy of your book on how to slash your tax and protect your assets, complete our web form by clicking here. Or call us on 1300 669 336. One of our staff will be glad to assist you.

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