How Our Business Partnership Tax Services Can Help Your Business
Starting a business partnership has both its benefits and pitfalls. As long as you understand and adhere to the tax requirements,this business arrangement is easy and cost effective to set up and flexible to operate.
If you are thinking about setting up a partnership business structure, creating a formal partnership agreement and buy-sell agreement will help you save time and money in the long run. Stones Sharp can help you and your solicitor to make the process seamless and ensure both personal and joint benefit for you and your business partner.
As an established partnership, we can then assist you in your partnership accounting and taxation requirements and ensure that your lodgements are compliant with the latest regulations from the Australian Taxation Office (ATO). Additionally, we can advise you on how to maximise the available tax benefits and deductions for your business.
Stones Sharp can work with you and/or your solicitor to ensure that:
- Both you and your business are protected
- Decisions between you and your business partner are accurately documented
- Partnership taxation matters are addressed
- Tax concessions and deductions are maximised
Shane Borg
FCPA | CA
Director
Get In Touch About Business Partnerships
Why do you need an Accountant for a Business Partnership?
The tax obligations for a partnership are unique to other business structures, in which each partner pays tax on their own share of the income they receive. The partnership’s business operations can determine how both partnership and individual partners’ tax returns are calculated, including eligibility for deductions and concessions.
If there is a loss incurred, you and your partners may be able to offset it against personal income streams. Consulting with a CPA Accountant ensures your business adheres to all these requirements and best practices to set you up for long-term and sustainable success.
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Frequently Asked Questions
How does taxation work for partnerships?
A partnership business is not a separate legal entity like a company and therefore doesn’t pay tax on its income earned. Each partner pays tax on their share of the overall partnership income at individual income rates. The business still needs to lodge a partnership tax return under its own tax file number.
Do partnerships have to pay Capital Gains Tax?
A partnership itself doesn’t own any assets, and instead any assets are owned by the individual partners. Whilst the partnership needs to calculate and report any capital gain/loss on the sale of assets, it is the individual partners that declare these amounts in their personal income tax returns and pay the relevant tax on their share of any net capital gains. Partners may be eligible for Small Business Capital Gains Tax Concessions if they meet all the conditions.
