21st Century Accounting

“I called my bank as I wanted to buy an investment property and after being put on hold for over 25 minutes I was transferred to a ‘customer service’ representative that I doubt knew what negative gearing was. I contacted 21st Century Finance and they knew exactly what I wanted – they collected all information required and delivered a pre–approval that gave me comfort to bid on a property in mind. Upon forwarding the contract of sale mortgage documents were prepared in under 10 days and I was updated along the way.

I now own my first investment property.

I'll highly recommend your service for anyone requiring finance. Thanks a million.”

- Rebecca Berwick VIC




		ACCOUNTING SERVICES Tax Returns Book Keeping Accounting Packages
		TAXATION SERVICES PAYG Income Tax Corporate Secretarial Services
		BUSINESS SERVICES Companies Trusts SMSF Asset Protection Structuring Mortgages
		PRODUCTS Tax and Asset Minimisation Homestudy Program
		ESTATE PLANNING Wills




		Q. WHAT IS A COMPANY? A company is a separate legal entity from the owners. It can sue and be sued in its own name separate from the person who owns it. It has limited liability for its debts. A company can either be a public company (Ltd) or a private company (Pty Ltd). A company is run by it's directors. It is owned by it's shareholders. There are many benefits associated with establishing a Pty Ltd Company. Because a company is a separate legal entity from the owners, company shareholders can benefit from income splitting, profits can be retained in the Pty Ltd Company and be taxed at the 30% corporate rate and excellent asset protection is available if the Pty Ltd Company shares are owned by a discretionary trust. 21st Century Accounting can ensure your company is set up correctly and ensure it is best suited to your needs. Click Here to fill iin a Company order form Click Here to find out more about Companies THE BENEFIT OF SETTING UP A COMPANY A limited liability company is liable only for assessment of taxation on its own profits and any taxation assessed is payable by the company itself and not personally by the directors or shareholders. The profits of a limited liability company are assessed at a flat rate, which under the New Tax System is 30%. This is substantially less than the current highest marginal tax rate of 48.5 per cent, as per the personal income tax scale. Directors of course pay income tax on any personal income tax and on profits derived from the company YOU SHOULD SET UP A COMPNAY WHEN YOU ARE IN THE FOLLOWING CIRCUMSTANCES When the company is to act as a corporate trustee for a trust. When the company is to operate as a bucket company to accumulate income as a beneficiary of a trust. Companies can accumulate profits and pay tax at no more than 30%. When the company is to contract out personal services of an individual for income. In this instance careful planning is required to ensure that the rules associated with deriving personal services income are adhered to. When a governing body of a professional service will not permit members to operate through a trust structure. In this instance, you may be required to set up a company due to the nature of the industry you work in.


		1800 730 491

		accounting@21stca.com.au