Tax aspects of incorporating your business

Introduction

The purpose of this document is to help small businesses decide whether to incorporate and to explain the tax implications of that decision.

The material is limited to tax and superannuation issues arising purely as a consequence of incorporating a business. Ongoing issues are dealt with via links to existing Tax Office products and information.

Last Modified: Wednesday, 24 February 2010

Table of contents

Introduction

Should I incorporate my business?

How do I register my incorporated business?

Company tax

Company tax losses

Shareholder loans and payments for private companies

Incorporating and capital gains tax

Trading stock considerations

Treatment of depreciating assets

Treatment of work in progress

Debtors

Prepayments

Employee leave entitlements

Capital expenditure incurred in restructuring your business

Superannuation

Using service entities

Fringe benefits tax

Relevant income tax rulings on incorporating a business

Stamp duty

Forms and publications

Give us your feedback