“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.