Who's Name should the Business go in?

[stockman2678]

Hi All,
Just after a bit of advice for business structure.
I'm looking at starting a small online business, nothing huge at this stage, so I was thinking Sole trader would be the way to go.
I am currently employed full time and my wife is a full time mum.
Can I register the business in my name and have my wife apply for the ABN in her name?
Or should it all be in my wife's name.
I basically want to set it up and let her run/manage it once established.
Thanks in advance.

[JakeThomas]

Hi Stockman, just wondering what your wifes involvement in the business is? Why would you be considering registering in her name?

[v2Media]

Jake - for tax minimisation purposes.

stockman, a discretionary trust is the way to go, with a company as the trustee. You, your wife, and kids, if there are any, can be beneficiaries of the trust. You and your wife can be directors of the company and the company can have any trading name you like (providing it clears).

The beauty of this structure is that you can draw funds from the company as you would in a sole proprietorship and come tax time, distribute the income as trust payments in the most tax effective manner.

If you go the sole proprietorship route, the business' tax financials are included in the proprietors individual tax return. You can't register the business in your name and the abn in hers. The abn IS the business.

Talk to an accountant for the best advice on tax minimisation.

[JakeThomas]

Ahh, gotcha - I thought that might be the case. Creative accounting isn't it called?

Mark is right about the accountant - if they have all the details in front of them, they will be able to give you the best details.

[stockman2678]

Thanks heaps!
Much appreciated!

[AshleyWhiteBusiness]

It is fine to register under her name. Besides you are married right