Online business - claiming expenses before incorporation

Discussion in 'Business Accounting, Tax & Legal' started by Tubs, 31st Dec, 2018.

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  1. Tubs

    Tubs New Member

    Joined:
    31st Dec, 2018
    Posts:
    1
    Location:
    sydney
    Hello,

    I have a pilot/test website that I have built and paid for on my personal credit card. I will to set up the company once I think my business model has legs (will be in the next 3 months) . I've incurred a few thousand in setup costs plus domain name etc.

    I dont plan on making any money in the first year of operation, I will accrue any advertising revenue and have it paid once Im ready for other revenues to come in.

    I have a few questions:

    1. Can I personally invoice the company for these costs and have the expense sitting as an unpaid liability on the company books?
    2. If my business is "dormant" for a year and doesnt collect any revenue but incurs the aforementioned expense do I still need to lodge a tax return for this period?

    Not expecting formal advice here, just any feedback would be great before I go see an accountant.

    Thanks
     
    Tubs, 31st Dec, 2018
    #1
  2. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,943
    Location:
    Australia wide
    1. has the company incurred these expenses? Who owns the website?
    2. yes
     
    Terry_w, 3rd Jan, 2019
    #2