What are the taxation related things to consider when starting a business?

Zeke: What are the taxation related things to consider when starting a business?
What are the main tax things to consider when starting a business?

For a sole trader, partnership and proprietary company?

Answers and Views:

Answer by ~*wordsmith*~
The principal differences between these entities are:

Sole trader: you claim all the profits, and you are responsible for any losses or things that might go wrong. If the business fails it will be up to you to bail it out or go bankrupt. Details of the business are reported via the supplementary section on your own tax return.

Partnership: A business or trading entity run between two or more parties. The profits or losses are shared. Each partner is liable for the failure or wrongdoing of other partners (unless proven otherwise). Reports tax on a partnership tax return with the distribution to each director to be claimed on individual tax returns.

Proprietary company: A legal entity in its own right, failure fo the company does not necessarily become failure of the director(s) although Director’s Penalties can be imposed and you can still be pursued in court if things go wrong. Lodges its own tax return, books subject to scrutiny, payment to directors are declared on individual tax returns.