Are you a sole trader and feel you’re paying too much tax? If so, you’re not alone!
We recently had a client who earned approximately $250,000 in taxable income and ended up with a tax bill of nearly $90,000.
That’s a tremendous amount of money to pay in taxes, so we proposed restructuring their business into a discretionary trust with a corporate trustee. This allowed them to distribute some of their income to their family, resulting in a $10,000 tax savings each year.
Not only does restructuring your business provide tax savings, but it also offers asset protection and more opportunities for tax planning as your business grows.
Plus, the extra money you save on your taxes can be invested back into your business or used to pay off your mortgage, go on a family holiday, or even renovate your kitchen!
But how do you know when it’s time to restructure your business? Here are three signs to look out for:
1. Your taxable income is creeping toward $120,000;
2. You have or are planning on having assets you want to protect;
3. You are employing staff or using contractors.
If you’re a sole trader with a growing business, restructuring your business could be the key to saving on tax and protecting your assets.
Don’t wait until it’s too late. Book a 15-minute strategy call with our team, and we’ll talk about your current position.
Click this link to book a time https://impalatax.com.au/discovery/
