“How can I take money out of my company” was my article this month in leading Start-Up publication, Shoe String. Why? Following up from last months post on the issues around moving a business from their own name to that of a company, I decided to follow up with a more detailed post about how to take money out of your company.
Normally I don’t talk in so much technical language but it’s a question that I keep getting asked and is something very relevant to start-ups and small businesses.
So, what were some of the key tips that you should know when taking money out of your company:
- A Director is not considered to be any different to an employee when taking money out as a salary. So factor in PAYG tax and superannuation when thinking of these types of payments.
- Dividends paid to you can gain the benefit of tax credits when done properly. So make sure you have taken the right steps when doing this.
- Be careful if you borrow money from your own company. It’s not a bottomless pit and the ATO expects you to repay this loan, just like any other loan.
You can read the article here.
“But it is my company and my money” was my article in this months leading Start-Up publication, Shoe String. Why? We often get questions about the issues start-ups and small businesses have to consider when moving a business from their own name to a company. And those questions are often about money.
When it comes to starting a company, you need to be aware that the company bank account shouldn’t be treated like your personal bank account. And what steps do you need to take when managing or taking money out of the business.
Some of the key tips that we thought were really useful are:
- Separate business and personal expenses to help you track your business performance more effectively.
- Be clear about what is the company’s and what is yours. Also make sure that any payments you take don’t get you into tax troubles.
- If someone tells you that a company director can be a contractor, think again. Why? A company director should be acting for the benefit of the company, a contractor is someone who is independent.
- If you have other owners in the company, make sure you are completely transparent with any money you take out.
We find that these steps are really important to help manage your business and to make better business decisions.
You can read the article here.
We have launched today and are delighted that you have come past our blog.
We’re planning to write this blog with the following people in mind:
- You’re a small business with roughly six or less staff
- You’re interested in running your own small business
We’ll cover a whole lot of interesting content. We will chat about issues we experience in running Nudge, as well as topics and info that small businesses will hopefully find useful. And, of course, we’ll also keep you update to date on accounting and tax news for small businesses.
Before we go, just a bit more about Nudge – Whilst we’ve officially just launched today, we have been working on our concept for over twelve months. In our pre-launch period during the last few months, we had a number of small businesses experience our service, and the feedback they have given us (some of which is on our homepage) to date has been fantastic! We’re the first Aussie integrated solution and are super excited to be bringing our service to the whole of Australia. Feel free to drop us an email, call or comment via this blog.
Emma, Mark and Aaron