Have you ever thought about breaking free from the 9-to-5 routine? Maybe it’s that business idea you can’t stop thinking about, or a vision you’ve been waiting for the “right time” to start. Launching your own business is bold and exciting; it’s hard work and it’s rewarding. However, it can also feel daunting.
You don’t have to take the initial leap alone. Behind every successful venture is someone who can help turn the chaos into clarity, and that someone can be your accountant. A good accountant isn’t just about numbers; they’re your strategic partner, helping you set-up innovative accounting systems, managing your cash flow, ensuring you stay compliant and assisting you to make confident decisions. With their guidance, you’re likely to avoid costly mistakes and stay focused on what matters most – your growth.
The New Zealand economy needs fresh ideas, bold innovations and brave entrepreneurs. With a trusted accountant by your side, your vision can contribute to this, transforming your dream into reality.
The adventure to sole trader
A sole trader entity is simple and cost-effective to set-up, making it suitable for small businesses or contractors. You retain full control over the decision-making and operations, with all profits going directly to you. Tax compliance is straightforward, income is taxed at personal rates, GST registration is only required if turnover exceeds $60,000, and there is minimal reporting compared to companies. Generally, it’s a practical starting point with a lower administrative burden.
Levelling up to a company
As your business grows, or if you are investing in an established business, moving to a limited liability company structure, opens new doors. It may enhance your credibility with clients, suppliers, and lenders, while offering flexibility in how you manage your income. Company profits are currently taxed at 28%, and allow for greater planning opportunities. This structure supports expansion and allows ownership to be transferred more smoothly. Profits can be split amongst shareholders and a company can also continue operating beyond the involvement of its original owner, ensuring your hard work lives on. A company requires more set-up and compliance, however the long-term advantages may outweigh this.
Access to a wealth of knowledge
At MCI, we have team members from all different walks of life who are passionate about our community, region and supporting our clients. Our senior staff have over 260 years of combined experience; they understand market cycles, regulatory changes, industry trends and have successfully navigated through various challenges. MCI are passionate about driving your success. Get in touch with us today – we’re always in your corner!