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LETS GET DOWN TO BUSINESS.

Question :
Hey! I wonder if anyone here can provide some advice on setting up a business as a company or sole trader. I am a Practising Visual Artist keen to create my brand and set up a business to sell original artworks as well as Editioned prints through my website and galleries/stores. I am looking to also expand and explore other products I can create later down the track that uses my art. Any advice would be awsome! thank you so much :)

Question submitted 29/06/20 @ 09:48pm
Industry: Funding & Finance
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  • Hi! The main benefit of having a company rather than a sole trader would be ‘limited liability’, the debts of the company are limited to it’s assets, and creditors can’t pursue owners/directors to recover funds (under normal circumstances – if something underhanded is going on the company structure doesn’t always provide protection). This doesn’t sound like a particularly risky venture to me. There may also be some income tax advantages, but they’re unlikely to be worth the cost of administering the company at the beginning. I’d be inclined to start out as a sole trader with this one (at least at first) and see how it goes. Company administration is complicated and costly, need to prepare accounts, file tax returns, deal with distributions to the owners etc. As a sole trader all you would need to do is get some help to calculate your taxable income and include it in your tax return at year end. If you cross the $60k earnings threshold you would also need to register for GST (same as if you were trading through a company).

    This was super helpful! thank you for your advice Warren:)

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