You might also want to watch: Sole Trader Q&A. Your Questions Answered: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-SXDPqa8Nhks.html Limited Liability Company Explained: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-kKE_JKVfPA0.html Which Structure Should You use: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-eM2QIxSl7Lw.html
Very informative and clear, and thank you for the other videos, I'm contemplating becoming a sole trader - and it's the taxes that get me, but it's never to late to learn
I am thinking about becoming a sole trader. Am I able to pay tax through my bank account each week rather than at the end of the financial year in one lump? Thank-you great to listen too
Yes, you can. IRD has a ‘Pay-as-you-earn’ option for small businesses, sole traders and contractors called the Accounting Income Method (AIM). Check out Inland Revenue, or speak to your accountant/tax advisor to get the details.
If you are a sole trader or an LLC, the process of starting a business, selecting products or services, designing processes, target market etc is the same. Check out this playlist for more info: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-T0htUEUlwlI.html
I no longer work as a consultant. You can get much of what you need by watching my videos, but for specific advice, check out your accountant or Business Mentors NZ on: www.businessmentors.org.nz/. Thanks for watching, it is much appreciated. Good luck.
Thanks for your video, I'm very new to this kind of thing. I've thought about creating my own business by reselling items online. I believe becoming a Sole trader may be the best option for me. I may have one silly question i apologize. I plan on using any profit that I make from reselling to fund both the continuation of reselling and to start other business ideas, can I have multiple businesses under the one Sole trader entity as long as theres different bank accounts for everything, book keeping and anything else is all kept separate? Thanks again for your clear video!!
I do also have a follow up question. If people give me things on their behalf to sell and take a cut out of the sale price as a fee could I still operate as a sole trader?
Hi, Thanks for the sub, I appreciate it. Always check with you tax advisor for their preferred options, but you are allowed to have more than 1 activity happening as a sole trader. Your idea to keep everything separate is a good one, more so that you have a very accurate understanding of where your revenue and costs are. While you probably don't need to go as far as keeping separate bank accounts, you should definitely keep separate books for each activity.
Yes, see my reply to your first question. Are you getting a commission on some-one else's sale, or processing the complete sale, passing the proceeds over to the seller and then taking a commission? Obviously the profit to you is still the commission and remains the same either way, but check with your tax advisor as there could be GST implications depending on your set-up and revenue totals.
@@PeterNola Thanks so much for the advice on my questions. I will make sure to check to confirm if Sole trader is the best option and will look to keeping everything separate! In terms of taking commission the way it would work is I would complete the sale on behalf of them and take a cut out of the total sold price.
Hi, every good topic for business starters like me. However, could you please clarify if a sole trader can really employ people? up to what extent? Thank you in advance.
How's it going, my names Rich, I found this video very insightful. I was wondering if you had a video what advice around two sole traders converting to a Ltd business?
Thanks for compliment. No, I havent done that, but its a good idea. There should be no issues. Just have a start date and ensure that you trade as sole traders up to that date and as a LLC afterwards. You will then need to file annual returns for both at the end of the year. Be very clear with your book-keeping. You may need to transfer assets to the LLC etc,. Your accountant will be able to advise you.
It's valuable to watch .concise and clear video..Have subscribed .Thank you so much One question ...Can I do it in nz while on work permit as a dependent visa of three years..Already having job and want to start business as a sole trader
Thanks for the compliment. I appreciate it. Im sorry, but my knowledge of immigration and visas is not very extensive, so I cant comment on what's allowed under your visa. You can certainly be a sole trader and have a fulltime job.
Hi Peter, I would like to start to sell my home-made products (laser engraving) at the lokal market. Do I need a registered this as a sole trader business? Can I do this, when it is only my side job/hobby next to my fulltime job?
Yes, you can. Many Sole Traders are part-time. The income generated is added to your wage/salary and then taxed accordingly. You can deduct expenses related to the Sole Trader activity, as well. Talk to who-ever prepares your annual tax return and they will advise you to income thresholds etc and make sure you are set up in a way that best suits you.
No, Im not a financial advisor, so I cannot give advice around income tax etc. I do have a video on GST basics and you can find that in the video you just watched as a card or here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-T1SxmcZET5o.html
I am applying a NZBN but I am a bit concerned about using my home address as the business’s physical address since I will be working from home. Would virtual address be the solution?
Hey, I am wanting to become a freelance writer and the IRD and CAB told me I don’t need to be a sole trader in order to start freelancing. Just wanted to ask why do people recommend to start being a sole trader if it’s not legally required to do so if you wanna freelance?
Probably depends on the value of the remuneration and the expenses you will claim, GST, employing people etc. I would always follow IRD's advice as its their rules we all try to adhere to.
Hey man, not sure if I can ask you this. But is it possible to be a contract labourer with an expertise in a specific field ? If so what would I need. Cheers.
You can start as a sole trader contractor anytime, even if you have another income. You dont need to have any qualifications or experience. Just contact companies, offer your services and away you go. Make sure you talk to an accountant about invoicing, tax and GST etc as it is critical to get this right from the start to avoid any IRD issues later on.
Hi, I did update it for 2024, but there are very little changes so it is very similar You can have a look here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Va64RXKjWVA.htmlsi=HfbMhJuXF6kewa4E
Hi Peter, I'm in my late teens and really want to start my own coffee stand, I know its small scale but I just want something to do on the side along with uni work. Anyway, What would I need to do if I wanted to sell coffee and sell small bakery items such as slices of cakes, buns, biscuits, etc? Will I need some sort of food license if I'm operating as a sole trader? Thanks for the great video, Luke
Yes, you will need to comply with City Council by-laws. If you are in Auckland, check out: www.aucklandcouncil.govt.nz/licences-regulations/business-licences/food-businesses-quality-grading/open-food-business/Pages/starting-food-truck.aspx Otherwise check your local Council
Thanks Peter awesome information - I’m wanting to run a food trailer I purchased last year during COVID. Who would you recommend as advisors I could make contact with I’m in Tauranga would appreciate your response.
Morena. Im jealous of your skills. I love food, but am not the greatest cook! Im not familiar with advisors in Tauranga. I suggest you contact NZ Business Mentors. They are a national organisation that provide mentors and support across NZ. I did put together a video on business mentors/coaches etc: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-zc4xYfbIPAw.html Have a look at the video as mentors and coaches do provide different services and costs and it does depend on what you are wanting. There are some great coaches working out of Auckland that do cover the country and Im happy to put you in touch with them. But try NZ Bus Mentors first at: www.businessmentors.org.nz/
Brilliant thank you for your response I will keep watching all your videos and will get in touch with NZ Business Mentors. Appreciate the information you are sharing. Thanks.
Hi I'm thinking about going to sole trading with a private society agreement to decouple from the government covid-19 regime and use common law to back it up should police come in to inforce vaccine passports, would I have to ring IRD and change stuff or just draw up a contract for customers to sign as they come in for hair and beauty treatments?
Sorry, I dont think I can help you, I have no experience in this area. I would suggest you talk to a good commercial lawyer and accountant to ensure that your structure does what you are thinking it will do. It sounds interesting, I hope it works out for you.
Thinking of starting my own online business using screen printing merchandise how do I find out what licenses or permits I need to make this happen? Who do I speak too?
There are not many businesses that need special licenses or permits, but they will be usually issued by your local City Council. If you are in Auckland, check out: www.aucklandcouncil.govt.nz/licences-regulations/business-licences/Pages/default.aspx otherwise contact your local Council.
Hi, Thanks for watching, I appreciate the support. Yes, I can do a video overview on Trusts. I did have one planned but recent changes to the trust laws meant I wasnt sure I was still current with my info, so I shelved the idea. I will have another look. It'll take a few weeks to come together.
@@PeterNola great, thank you. I seem to recall at least 2 additional compay structures were formation options about 15 years ago, a liability trading type and a close type. Anyway, a recent search revealed 3 options; LTD, Co-ops, and unlimited. Any advice for a potential tech startup, having only intellectual property(though very valuable), no capital, and no team? Its a rather silly question requiring many things to answer it fully, but perhaps there's 1 outstanding remark that you could make that could be put into practice?
@@edwardhunia6315 From what you have said, you should consider speaking with a lawyer about your IP protection, and maybe a broker about public liability insurance. A Co or sole trader is OK to trade from, with the added protection of copywrite, trademarks and IP held elsewhere. It is not uncommon to have a holding Co own the IP and then lease back to your trading entity. Depending on how its structured, if anything happens to the trading company, you can still retain ownership of the IP. I am not a lawyer, so my comments are very generalised. You should definitely talk to a good commercial and copywrite lawyer before making any decision.
Hey Peter, I’ve been building my clothing brand I have shirts printed and everything I just wanted to know how tax works and when it’s required to pay, I understand you don’t have to pay GST till your making over $60k but because I have a full time job engineering already will I be charged secondary income tax? Cheers!
It will depend on the tax codes used as to tax rates paid. You should talk to your tax advisor or accountant about tax rates etc. You are correct that GST doenst become an issue until after $60k of turnover, but tax rates relate to in come, hence my suggestion of talking to a tax expert.
Hey Peter! Thanks for the information. Just wondering, I’m a blogger and youtuber operating underneath a pen name. Am I still able to set up a sole trader underneath my pen name? Thanks!
A sole trader can use a trading name. Your NZBN and GST numbers etc will be registered to you as the sole trader so you will need to include both names on any official documentation to avoid confusion. Just check with your accountant/lawyer to make sure you are set up correctly
@@PeterNola okay thank you, further clarification, by getting a sole trader it applies to ALL of my online income streams from every platform (blogging, youtube, tiktok, etsy) - so I don’t need to apply a sole trader position for each one?
@@amarameadow9324 Sure. You are the Sole Trader with your own NZBN and IRD number. You are then able to have any number of trading names etc. You can work fulltime and have a side hustle, have numerous social sites all named differently if you choose, but you are still the sole trader. For example: Jo Black could be the person and sole trader, but the YT channel could be Black TV, the blog could be Jo's blog etc.
Thanks for the very useful and succinct information. I'm about to start locuming (Contracting) as a Doctor at GP practices around NZ. I would assume the best way to do this is as a Sole trader? Do you have more information available on how to manage and claim for work-related expenses such as Travel/ Accommodation. Do you suggest any particular apps or software to keep track of these?
Hi. Yes, I would have thought sole trader was the simplest way to go. One of the easiest ways to manage expenses, etc is to use a separate bank account. That way your statement will be a record of expenses. There are probably good apps available, but I havent had any comments or recommendations from clients about them. For good accounting software you should try: MYOB and Xero.
Thanku so much. I'm Starting a business, know decided "Sole trader" Question; Do I just need get NZBN number & register for GST no. as I have 1: Name 2: Personal IRD No. and I can get started aye?
You dont need to register for GST until your revenue is over $60,000 per year, but you can register below that if you think its beneficial. I am a sole trader and I didnt get an NZBN number until I needed it for an application a while later. Check out my GST register video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-T1SxmcZET5o.html .
@@PeterNola Thanku heaps, Yes I carried on thru yr videos of GST & LLB💥💯🙏 Thanku💚so grateful, has also confirmed to continue as a "Sole Trader" than Company. Love Yr Videos, Presentation, Information💯💥Sooo Grateful💓for yr💝gift💜🙏
Good luck with your business, online business are a great way to go. It is unlikely you will need a permit, but the depends on if you are selling restricted goods like alcohol etc. Your tax and register questions have be answered in my previous videos: Registration: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-P6KDee1cr6Q.html GST: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-T1SxmcZET5o.html I also talk about cashflow forecasting, business plans etc in other videos. I hope that helps.
Hey Peter, your videos are very helpful, but I wanna know is all the details in this video the same for an immigrant on working visa when starting a sole trade business
I'm not an immigration expert, so I don't know what is, and is not allowed under the various visas. I have spoken to sole traders in the past who are residing here but not citizens, so it must be possible. Check with a local NZ immigration consultant to be sure.
When does a "Hobby" become a "sole trader"? I sell my hobby crafts and used to make $8-$20 a month and my accountant said I don't need to declare it as its a hobby. This year I am making $300 a month (before expenses). At what "profit level" would I need to become a sole trader?
Hi Peter. Thanks for your video. I'm looking at being a Day Trader in the Binary & Forex market and researching all the necessary things I need to be legal and successful. Is being a sole trader the best place to start? It's not a subject that's easy to find. Thanks again.
You can start as a sole trader and change as needed. As long as you keep clear records regarding income, expenses, capital expenditures etc you will be ok. As always, speak to a reputable tax advisor for their opinion. Good luck.
Heya, awsm video. Liked & subscribed already. What’s your occupation btw? You Explained well & easy to understand for beginners. Are you knowledgeable about nz income tax in depth by any chance? Or even buying/ selling/ upgrading property related. Just waiting eagerly for ur next video I guess. Thank u. God bless.
Hi, No, Im not a tax expert and I rely on my own tax advisers for advice. I am a Business Broker, so I sell businesses. While I understand commercial and residential property, its not an area I work in daily, so I dont give advice here. Thank you heaps for the watch and the sub. It is appreciated.
Hi Peter! Your videos are really helpful, thank you. I'm looking to start a small business in yoga teaching / wellness coaching in the New Year. I'm wondering at what point do I need to register as a sole trader? Is it when I start earning above a certain amount? Looking forward to your response :)
You need a personal IRD number and you then notify IRD (using that number) that you are a sole trader. When you prepare your annual tax return, you will prepare it as a sole trader and show deductions etc in addition to any income from PAYE or salary from another source. You will need to register for GST once revenue is over $60k in any year, and you can still be a sole trader with a GST registration. Depending on how you intend to operate, I recommend you engage a good accountant to do your annual returns. They will be up to date on the current rules around this and will ensure you are getting the maximum benefits while staying within the rules. When deciding on an accountant make sure you understand what they charge, and what you will be getting for your money. Dont be afraid to ask them a heap of questions before engaging their services. Good luck, I hope things go well.
Hi Peter, I just finished high school and have been working for the same company for 3 years. I’m thinking about starting a small lawn mowing business. How do you think I should start? Thanks mate
Hi, Simple. Get out there and knock on doors and find some clients. The best advice I can give you is : start now. Keep all your receipts for mowers, trimmers etc so your accountant can claim the correct expense/depreciation. You may need to do this on the weekends until you build up enough clients to enable you to quit you day job. Do a bit of research as to what your competitors are charging so you can be sure you are not undercharging. When you work out your charging, quote and sell your services as a monthly fee. The grass grows more in summer than winter, so you will mow more often in summer (maybe 1 mow per week) but in winter it might be 1 mow per 3 weeks. By having a monthly fee, your income is the same all year as opposed to heaps in summer and not much in winter. It is also good for the customers as they can pay the same monthly auto bank payment all year. Once you have a client, remind them about any additional services like section clearing, hedge trimming etc. Try to get commercial clients as opposed to residential. These clients are easier to manage, less price dependant, often last longer and your business will be more saleable.
Hi Peter, Thanks for the video. Two questions for you... 1. I am a sole trader (self-published author) who originally used an accountant when I arrived in NZ who advised I didn't need to register for a business number, that an IRD number was enough... Is this not the case? 2. This question is more niche... As an indie author, I also have an 'imprint' name, so my author name is "Helen Scheuerer" (also soon to have a pen name "Helen B. Scheuerer") as well as the imprint name "Alchemy", which is the imprint my books are published under. Other countries have a simple register for "Doing Business As" where authors can register these names, does NZ have something similar? I'd really appreciate any specific advice/resources. Best wishes, Helen
No, you dont need a business number as a sole trader. However, if you apply for the many grants and subsidies for business that are provided as Covid assistance, you will need a business number as part of the application. Im not aware of a "doing business as" register, but we do have some law around trading names or "trading as" which will help protect you. This is a little outside my field of expertise so I suggest a chat to a commercial lawyer. The other option could be register the name as a trade mark. I cover this in another video. Sorry I cant be more help.
Hi Peter. I'm looking to start a watch company but can only get manufacturing service overseas. I plan to start a kickstarter to get funding instead of applying for a bank loan and plan to market to a world wide market. How would this effect gst prices? And which company structure would suit me the best?
GST is charged on product sold on NZ. If you are selling into another country, then your sales will be zero rated for GST. You will still need to report your sales on your GST return. I would assume you would be an LLC.
Thats outside my experience as I haven't been involved with a business selling hemp, but I would guess it is thought the Ministry of Health. Sorry, I cant be more help.
He will be paying you based on the invoice you give him for each amount paid to you. Is it a tax invoice? Are you registered for GST? As a subcontractor you are expected to have your own expenses to claim and will look after your own tax etc, either as a sole trader or LLC. Most are registered for GST because of this. You should talk to an accountant about your tax position. While you may have to pay GST on your earnings, you will be able to claim the GST on your expenses and claim the expenses as tax deductions. How many other people do you sub to? There are employment rules around subcontracting, especially if you are only subbing to 1 company, so you should take advice. Definitely seek advice from qualified experts in employment and accounting, and dont leave it too long.
i would like to ask if I can register my business name even im not starting a small business yet?! just to register the business name? thanks for the video its really helps. thank you😊
Is it possible to go from having Limted Company to being a sole trader? I raced into setting up a company because I didn't know enough about it all and didn't know I could be a sole trader - I haven't used it for anything yet because I think I would be better off as a sole trader.
I dont see why you cant go from an LLC to a sole trader. There are some specifics you will need to do to wind the LLC up, pay tax, close bank accounts, file returns etc. Check with your accountant/tax advisor, but it should be straightforward to cease trading as an LLC and start up as a sole trader.
I was made redundant in Australia last December and have been offered a contracting position in NZ. I am setting up as a sole trader and intend to use Hndy to manage my tax and GST obligations. Does my income from my previous job where I paid tax in Australia count as income this year as a sole trader?
It will depend in part as to which country you are a resident or a citizen. There are reciprocal rules around paying tax on earnings from both countries. This is outside my area, so I suggest you talk to a good tax accountant to get the correct answer.
Thanks for the video Peter! I’m about to be an independent software engineer contractor and I’m wondering if it’s worth it to open an limites company rather than be a sole trader. Thanks in advance
Are you asking about profit if you play the slots personally? Or are you running a number of machines in gaming locations? There are rules around the distribution of profits from slots/games but this is not an area I have experience in. Given the extra scrutiny often given to gaming, your best option is to talk to a tax advisor that works in the area.
Hi Peter, I work both as salaried staff and have a small self employed business where I am a sole trader. I have no staff just myself. I am a bit confused, can I put all of my self employed ACC levy as an expense against my tax?
I am not a tax expert and you should be getting some-one knowledgeable to talk through your tax liabilities. However, as I understand it, you can claim the self employed ACC levy.
Hello I'm looking at starting a sole trader business as a distributor for an australian product. I wouldn't need any outside funding .. this should be about as simple as it gets?
You only need a licence if the activity requires it. For example, you cant be a tradesman without being trades qualified etc. There is no licence for just being a sole trader.
Is sole trader the correct option for someone who already has a full time job but wants to import and sell a product under a creative brand name they have created as a side veture ?? Or Will it be more beneficial to start a limited company from the get go ?
Check out my video comparing the pros and cons of the 2 options. Its always OK to start as a sole trader and then change as things grow. While the numbers are low, sole trader is probably easier, but once you meet the GST threshold, a change to an LLC is a good idea.
What do you recommend for a Kiwi RU-vidr who also has a day job in terms of tax? I had just planned to put aside 30% of the Adsense revenue for end of year tax return or using hnry app.
Its always a good idea to have tax monies put aside so you are not faced with a bill you cant pay. You will need to be sure you are claiming all legal deductions so keep very clear and separate records and make sure you talk to a qualified tax consultant or accountant to set you up properly. I am not familiar with hnry app. You might find that your tax requirements are less. Obviously this depends on income and deductions. Your channel looks great. Well done.
I’m trying to set up a Facebook business page but keep getting rejected I send my bank information and nzbn number but I still can’t get it verified what am I doing wrong I want to sell my cards I make online I use my personal home space. Can you help?
Yes, both incomes will be assessed for tax. You will be able to offset costs against your sole trader income and that will help reduce tax from that source. Talk to a good tax accountant to make sure you are claiming all the allowable deductions.
Hi Peter. I am currently working for wages paying P.A.Y.E. If I were to set up a sole trader business aswell as still working for wages will I need to pay secondary tax or will that just be taxed at the same rate
Sorry, tax is not my specialist area, so Im not sure. As a sole trader you can deduct expenses etc, so you might find that this works in your favour. I would definitely recommend you talk to a tax expert to get this right.
Hi Peter, I get paid monthly as a contractor ($200/week depending on the hours). I send them the hours I worked via a chatting app and they deposit the money to my bank account at some point of the month. How do I pay that tax for this amount I received? can I claim my electricity and internet bill as an expense (work from home)? Do I have to pay the tax every time I get paid?
I am NOT a tax expert, so my first thought is for you to talk to some-one who is. An Accountant or Tax Consultant local to you. In short, you can claim a portion of your power, internet etc as a deduction and there are a number of way to pay tax on a contractors income from a pay as you earn to annually. Both the deductions and the frequency of tax payments will depend on your circumstance (any other income/expenses etc), so talk to a tax expert. Sorry I couldnt be more help.
International tax laws are complex, and the way they are applied can depend on your specific circumstances and the different jurisdictions involved. If you’re a tax resident in one country and earn in a second country, you could be subject to the tax laws of each. You could be taxed twice on the same income. You need to take advice from a reputable tax consultant.
If you are talking income tax, not GST etc, then no profit=no tax. In some circumstances you can also claim a loss to be offset against future profits. I would recommend that you to have a tax consultant prepare your returns to ensure you are getting this right.
I'm wanting to start a clothing business, do I register under a company or sole trader? I have a name in mind I would like to protect, can I still do this under a sole trader or do I have to register as a company?
Hi, You can register as either. You can also register your company name to be different to your trading name. The best way to protect a name is via a company name registration and a trade mark, but check with a trade mark/IP lawyer to be sure. Check this video out: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-P6KDee1cr6Q.html
Hey Peter loveee the videos, please just another question . I am starting my own online boutique business but I need to get a resellers permit , how am I able to do that or do you know where I could apply and get one , so I can start my business please?
Sure, Im happy to help. I am assuming you are dealing in second hand goods? If so , then you can get all the info here: www.justice.govt.nz/tribunals/licences-certificates/secondhand-dealers-pawnbrokers/
@@niutuivanu7501 I havent checked that out, but I assume it would be some-one who knows you well, of "good character" (whatever that means), similar to when you get a passport.
Question, what if you already are selling things but not registered officially as a sole trader? For example taking up freelance gigs on the occasion but haven’t registered as a sole trader. Am I automatically counted as a sole trader? Will I get any penalties for taking up gigs without registering officially as a sole trader?
Income Tax and earning etc is not my area and your questions appears to be around undeclared earnings? Talk to a good tax advisor for more info. Sorry I cant be of help.
Im not sure how far down the process you have gone. I do talk about online businesses here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-hRW0l1HvEpk.html There maybe stuff that you havent thought of. I hope it goes well for you.
I assume you are talking multiple income streams? You are still a sole trader, but with income coming from a variety of sources. You can be a sole trader, company director and wage/salary at the same time.
Hi Peter, thanks for your video. It seems that getting an accountant is quite important at the beginning of starting the business. Can I please ask why it is quite important? and as I am about to start my side business, and don't plan to invest a big chunk of money at the beginning as a sole trader. Is it necessary to pay for an accountant? thanks :)
Who does your tax retunrs at present? Do you use anyone? An accountant is a tax expert. By not consulting an expert you do run the risk of not claiming everything you are entilted to claim, or you claim too much. They will ensure that your setup is right and you take full advantage of all deductions available to you. Its always your choice, but getting the right advice early, can often be the cheapest in the log run.
@@PeterNola Thanks, Peter. I have no one yet. As I am making the plan atm. and thinking how I should do the tax report. Myself, use the App or hire a tax agent /accountant.
Without more info it is very hard for me to give specific advice. I suggest you talk to your accountant and see what they recommend. You can change your mind and go from a sole trader to a LLC and vise versa if you pick incorrectly. Your decision will be guided on the size of the business, employees etc.
It's very valuable to watch your videos. Looks like you did my research. I have subscribed. Nga mihi. Query 1:- I have a full-time job, and thinking to start a side gig. After watching you, I am thinking to start as a Sole Trader while working full time. If things are growing well in the future I will leave the full-time Job, move Sole trader to LLC, and 100% focus on Business. Do you think is it a good idea to start as Sole Trader at the moment? Query 2:- For my side gig, I will be paying some overseas employee/ freelancer to get the job done, Can I do it under sole Trader, Or any advice will be highly appreciated
Thanks for the sub, much appreciated. Yes, what you say in Q1 is the most common way to go. The best time to start any new business adventure is now. Investigate, research, do your homework, then start. Yes, you can pay someone overseas, I assume as a contractor. Just make sure you have invoices etc, but what you are suggesting is not uncommon.
Hi Peter, Is that mean, after I register my NZBN, whether my business is running or stuck, I can just let the NZBN still exist, no need to cancel it as it is not impact anything with IRD payment? (Tax, etc?)
Yes you can. There are some rules around overseas company directors/ownership of a business, bank accounts etc, so find a reputable accountant and they will guide you.
hi ..im just wondering if you can be a sole trader as a second income?? i milk cows for a salary but was thinking of starting up a small buisness?? thanks
Do you mean a bank account? Best practise would be to run a bank account as the sole trader, and then a bank account for your personal expenses. Transfer a set amount from the sole trader account to your personal account each month. Then pay personal spending from the personal account, sole trader expenses from the sole trader account, etc. Talk to your accountant and follow their suggestions to minimise any tax issues.
Hi peter I am going to start a online boutique and there is confusion between sole trader and company. As i need to apply for sole trader or create a company?
You can be either. It will all depend on the best option for you regarding tax and GST. Talk to your accountant and get his advice on what will work for you.
If you are asking about a tax category, that will depend on how you are employed. Owner/driver? Subbie? etc. To ensure the correct category for you, ask your tax advisor what they recommend.
Hi this is Venkatesh from india I want to start up the company in NZ Civil structural engineering consultants All types of buildings, villa and warehouse can you please tell me process Like what is the rules in municipality, How much the investment for Star up, Visa and etc
Hi, You will need to speak to a qualified immigration consultant to understand the visa requirements as they are linked to investment etc. This is not my area of expertise. I suggest you contact some-one local (here in NZ) as they will have the most up to date information.
Kia ora Peter. Thanks for that insight. I'm looking at starting my own bussiness coaching and development. I will be a sole trader. So basically all I need to start is my IRD number and a NZBN, and someone to look after my books, does that sound right
Yes, thats sounds right from what you've said. As a sole trader, you will use your personal IRD number. The NZBN number is only needed if you are accessing any govt or local body support. I pretty much dont use mine. Keep separate bank accounts as it will be easier for your book-keeper to reconcile the business as they wont need to go through all your personal stuff. I hope it goes well for you.
Hey so if I am a sole trader and Im operating underneath a side hustle apart from my main income from my day job. I am not serious about my side hustle and so at times I wont be earning any money. Will NZ penalise me for this? Like if I dont make any money from my side hustle, will my sole trader operation be taken away from me, any penalties for being dormant? Thanks.
I dont think s, but Im not certain. You will benefit a little as you will be able to claim expenses, even if you sole trader income is poor and not making any money
@@PeterNola Right and to clarify, I have an overseas client for a freelance job. I got them to sign MY contract, is it totally legal if an overseas client signs MY contract? Dumb question but just wanna make sure Im not breaking some NZ law.
@@PeterNola Because I am a freelancer, being a sole trader means I will be liable for any debt. I’m not gonna take any loans out and I work solely from my house - so I won’t need to worry about debt?
