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I do not pretend to be a... 04/02/2017, 22368539

  1. Occam Logic

    1,012 Posts.
    I do not pretend to be a tax expert, so take this with a grain of salt.

    The costs of setting up and running either a very simple partnership or company are not that different. Call it ~$1,000 to set up and ~$2,000 to run annually. Can be cheaper or dearer depending on how you do it.

    But these costs will pale in comparison to the costs of getting the structure wrong. You are dealing in two separate legal and accounting jurisdictions. This is complex. You each need professional legal and tax advice.  They will be able to lay out the options for you so you can compare and look at what's best for the both of you. You also need to think about not only which structure is best to run with, but also most flexible to change and easiest to close down at some point.

    Regarding tax, broadly speaking net income you receive from carrying on a business (regardless of structure) is assessable income and needs to be declared on your tax return. Note of course that income is different from profit. But then there are ways to limit tax. Use of family trusts is a common one, where you can stream income to an individual in the trust who is on the lowest tax bracket.

    I have used both over the years, but only for Australian domiciled individuals. It's tricky enough determine which structure to use in one location let alone two. Get good advice and good luck!

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