The visit with the accountant was an interesting event. Even more so when he didn't charge me for the hour long chat. It turns out that the benefits of creating a company are not as impressive as one would think. Here are some of the considerations of forking out the $2-3K to kick things off;
- a low income spouse that I want to funnel money to
- kids at uni that could do with some cash, almost tax free
- annual income above $400K
- the companies I am working with demand that I have my own company
- I want to provide the illusion that I am bigger than I am
- I directly employ staff
Increasing income to $400K, that was an interesting concept. My partner was surprised to hear that I may be considering starting my own company. 'Aren't they long hours and hard work?' Nah, I respond with, I think it will be ok. Squinting at the $400K mark, yes, I do think that would be long hours and hard work!
Thoughts of venturing out on my own are not for capitalist reasons, it is the being more flexible with hours and jobs, to work more autonomously without the influence of some self serving higher manager, or corporate politics. After all, if you cannot find what you are looking for, then create it, that is my approach!
So an interim step feels like a good approach. Sole trader for now, register the business name and progress onwards with marketing and website etc. Create the illusion of bigger, whilst trying to avoid the complex company structure on the back end, at least until I need staff or income is above $400K. Has the basis of a good business plan.