Hey guys,
I know this post is probably better suited to a small business forum but this forum has its fair share of small business owners so I’m sure someone can help me out.
When we first established our business, it was under a partnership structure and any money paid out from the business to the two partners was simply added to our PAYG (day job) incomes and taxed accordingly at the end of the financial year.
About 3 months ago we registered the business as a company – the two partners are now the two directors (and only employees). We now would like to pay ourselves a lump sum from the company (as we did when it was under a partnership). Do I simply pay each director (myself and business partner) the lump sum and its added to our PAYG incomes and taxed at the end of the financial year? Or is there a lot more I need to consider?
I know this post is probably better suited to a small business forum but this forum has its fair share of small business owners so I’m sure someone can help me out.
When we first established our business, it was under a partnership structure and any money paid out from the business to the two partners was simply added to our PAYG (day job) incomes and taxed accordingly at the end of the financial year.
About 3 months ago we registered the business as a company – the two partners are now the two directors (and only employees). We now would like to pay ourselves a lump sum from the company (as we did when it was under a partnership). Do I simply pay each director (myself and business partner) the lump sum and its added to our PAYG incomes and taxed at the end of the financial year? Or is there a lot more I need to consider?