Join our investing community

Having the spouse own shares in a company

Discussion in 'Business & Startup Investing' started by chris_qld, 22nd Dec, 2018.

  1. chris_qld

    chris_qld Well-Known Member

    Joined:
    21st Jan, 2008
    Posts:
    47
    Location:
    brisbane
    I run a personal services business (I get contracts from several large customers/clients) through my sole director company at the moment. Instead of setting up family trust, I am considering having my spouse to own shares in my company so that I can distribute company's income. I wonder how I can do this.

    Thanks in advance.
     
    twisted strategies likes this.
  2. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    885
    Location:
    Sydney
    If it is PSI income then the spouse wouldn't be taxed on the income, you would.
     
  3. chris_qld

    chris_qld Well-Known Member

    Joined:
    21st Jan, 2008
    Posts:
    47
    Location:
    brisbane
    Thanks, Terryw.
    It's PSB, as I get contracts from different clients.
     
  4. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    885
    Location:
    Sydney
    well if you want to set it up it is easy to do, just establish a company with her as the shareholder and you as the director. You could draw a wage and she could get dividends.

    Keep in mind that she will have the power to remove you as director.