Having the spouse own shares in a company

Discussion in 'Business Accounting, Tax & Legal' started by charlie01, 22nd Dec, 2018.

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  1. charlie01

    charlie01 Well-Known Member

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    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.
     
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    If it is PSI income then the spouse wouldn't be taxed on the income, you would.
     
  3. charlie01

    charlie01 Well-Known Member

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    Thanks, Terryw.
    It's PSB, as I get contracts from different clients.
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    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.