Sole Traders

Are you currently operating or considering a sole proprietorship business? Look no further than MDB, the leading provider of bookkeeping, accounting, and tax services for independent contractors and small enterprises. Our team of dedicated sole proprietor accountants is here to assist you every step of the way.

What is a Sole Trader?

A sole trader is an individual who owns and operates a business as a sole proprietorship. In this business structure, the sole trader has complete control over the business and is personally responsible for all debts and liabilities incurred. They also reap all the profits generated by the business. Setting up and maintaining a sole trader business is relatively simple and cost-effective. If you directly own and manage a business using your legal name, utilise your TFN (Tax File Number), or register for an ABN (Australian Business Number), and conduct all your commercial activities under that name, you are classified as a sole trader.

As a sole trader, you are personally liable for all aspects of your business, including losses, profits, and potential obligations in the future.

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Sole Trader Services

At MDB, we offer two options tailored specifically for sole traders:

Basic Plan for Sole Trader Tax Return

Our Basic Plan for Sole Trader Tax Return service is designed to simplify your tax obligations. We ensure accurate and timely completion of your tax return, eliminating the stress of filing taxes. Our team of experts will help you maximise deductions and credits, providing peace of mind that you’re making the most of your return. With our service, you’ll have more time to focus on running your business and achieving your goals.

Individual Tax Return & Financials

This plan includes comprehensive financial statements, such as Profit & Loss and Balance Sheet statements, to address your banking needs effectively. Along with increased visibility of your business to achieve faster growth.

Comprehensive solution

This plan combines all of the above with additional unlimited support, advice and a comprehensive tax planning report before the end of the financial year to ensure you are paying the lowest amount of tax possible. We also constantly review the current state of your business providing strategies and a plan for future growth and potential restructuring.

Sole Trader Tax Return Process

In Australia, the Australian Taxation Office (ATO) classifies individuals and non-individuals differently. The term “individual” refers to unique individuals. As a sole proprietor, you are treated as an individual for tax purposes, paying income tax at individual rates. You will file an Individual Tax Return with the addition of Business Schedules, combining your sole trader business affairs with your personal tax return. There is no need to file a separate tax return for your sole trader business; it is all consolidated within your Individual Tax Return using your TFN and ABN.

Why Choose an accountant?

Just as you would need various professionals to build a house, handling the finances of your sole proprietorship requires both accounting and bookkeeping to ensure you remain compliant. When you partner with us, we assign an experienced sole proprietor accountant who understands the unique intricacies of your business. We offer a comprehensive service to ensure all your financial needs are met.

Contact us at 03 9349 1488 today to speak with a friendly member of our team who will guide you through the tax return preparation process.