Multiple Company Names

Discussion in 'Business Accounting, Tax & Legal' started by harmony, 4th Aug, 2011.

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  1. harmony

    harmony New Member

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    1st Jul, 2015
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    Sydney
    We currently have one Company (manufacturing) and pay wages to ourselves. We were wondering what the tax benefits are of having multiple company names?
     
    harmony, 4th Aug, 2011
    #1
  2. Meggsy

    Meggsy Well-Known Member

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    Brisbane, QLD
    None that I can think of? What advantages did you think you might get? You will have an additional expense (deduction) of about $218 in ASIC fees to keep another company registered. However, I would never suggest to anyone that they would enter into a transaction purely for tax purposes.
     
    Meggsy, 5th Aug, 2011
    #2
  3. Terry_w

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

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    Having multiple names or multiple companies? A company can only trade under its own name, or register a trading name and then trade under that. But it would still be the same legal entitty.

    Splitting the business up into several companies can result in greater asset protection. If one folds you don't lose the whole business.

    (But if you personally own the shares and you go down then it would be the same.)

    Having multiple companies can also help you reach a wider market, help with advertising, help with moving money around etc
     
    Terry_w, 5th Aug, 2011
    #3