While being relatively easy and inexpensive to create, a partnership business structure can require some skilful management when it comes to taxation and accounting.
With each partner paying tax on the share of the net partnership income received, and with tax being charged at the personal tax rate (which goes up as earnings increase), it can be tricky to correctly respond to your obligations.
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We're here to guide you through the intricacies of partnership tax and accounting.
Our experienced team can assist with everything from implementing the right processes, to every aspect of your ongoing tax and accounting obligations.
Choose the best accounting partners to help you take your partnership business from strength to strength.
We have worked with Liston Newton's Accountancy and Advisory Team for over a decade. During that time, our business has grown substantially both organically and through purchases. This wouldn’t have been possible without Liston Newton Advisory to assist with our business planning, providing proactive advice and ensuring our accounts were always compliant in a complex and volatile industry.
Liston Newton's Accountants analysed our financial and business situation and helped us implement strategies to improve our position. Their strategies turned our business from making a loss, to recording a 6-month net profit of 36 per cent. And we are now on track to show a 240 per cent increase in turnover over the next financial year.
Liston Newton helped us move our accounting over to Xero. Their Accountant managed the set up and training so we felt comfortable with the software. We now have all our processes streamlined which gives us improved visibility of our business performance. This has allowed us to open 2 more stores without a significant increase in administration effort.
Choose the advisors with all the qualifications and experience to help you excel.
For the right partnership accounting advice, Liston Newton Advisory is at your service.
In Australia, a partnership business structure is when two or more people act as co-owners in a business and share income with each other. For a partnership business, advantages include that they are cheaper to set up than a company, and profits do not have to be disclosed publicly.
A written agreement brings a partnership into being. Once done, you will then need to:
If your partnership has revenue in excess of $75,000 per year, it may also be necessary to register for GST.
A partnership ceases to exist every time there is a change in membership. If you wish to add or remove individuals from the partnership, you must dissolve the present partnership and create a new one. This is done by executing a new partnership agreement.
Generally no. A partnership is not an effective vehicle for holding or amassing appreciating assets. This is because a change in the Partnership has certain capital gains tax implications.
Partnerships can be a good tax structure to minimise tax, because a partner can use any losses to offset income earned from other sources.
What to do with the profits after selling your business, and the best tax structure after your business sale. Read more here.
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