Paying yourself within a company structure.

[Ramps]

Accounting question. Experience and advice of people who have been involved in such an area would be greatly appreciated.

I will be going to accountants soon, but I'd like to know if you are starting a new company, and are registering as a company and not just a business name how does one pay oneself, considering that the company is a different legal entity to yourself and the obligations are clearly different to just operating as yourself under a business name.

[mightytiges]

I'm no accountant Ramps and someone here actually qualified may offer more rigorous advice but here's a link that may help you for starters:

http://www.flyingsolo.com.au/forums/starting-business/4457-paying-myself-wages-under-pty-ltd-structure.html

[tiga]

Ramps.

I ran my own business for a while and found in the initial stages, provided you have invested some of your own startup capital (a personal loan to the company using your own cash) is to draw back on it if you require funds to live on as it is tax free and any income the company earns, keep it in the business. Once all your investment capital has been drawn back, you would then have to draw a wage and pay all the necessary payroll taxes and liabilities. 

My company was Pty Ltd with directors etc so if your business is a different structure, my advice may not be suitable for you.

Hope that helps.

[Chuck17]

My advice is to spread the wages allocation out amongst as many close family members as you can.  Wife does the books, son does the lawns etc whether or not they actually do the work, just pay the wages into your own/family bank account.