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  1. #11
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    Dazza: I'm not going to offer my two bits worth as to whether or not you should form a company. But I do recommend a separate bank a/c for your investing/trading activities. Years ago, when I got into serious stockmarket activity, I opened a Macquarie Gilt Edge Access a/c and have never regretted it. You get a cheque book and they pay interest on the credit balance, with no minimum threshold. What I particularly like is the provision in the front of the cheque book of a record of transactions - you can enter details
    of every cheque you write and every deposit - every buy or sell. It's wonderfully simple and efficient especially for a simpleton like me. I use the GEA a/c solely for my investing, using WBC cheque accounts for all other income/expenditure. It's often convenient, but not obligatory, to use Macquarie Equities as a broker.
    They're not paying me to say this!
    Good on you, Dazza, for starting early. Good luck.

  2. #12
    Senior Member
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    May 2000
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    New Zealand.
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    quote:Originally posted by Dazza

    shot mate, steve are u doing this type of thing as of now?!
    Yes. Been doing it this way for 10 years now...

    Death will be reality, Life is just an illusion.

  3. #13
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    Nov 2004
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    Auckland, , New Zealand.
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    could u bear us some more info steve? how u set it up and run it etc? give factual numbers instead?

    while driving back home, i came up with an idea....

    ok say i start the company with $10,000

    now my main concern is, i will be investing $200 weekly to the company. how do i do that? under what transaction?

    now i will have a debenture to parents of say 8% pa *say they gave me the 10k*

    end of financial year, say i made 2k from the trades. so i pay my olds 800 bucks *the 8%*.
    that leaves me with 1200.

    can i like transaction say give shareholders all profit, therefore $1200 is given to me... then i pay personal tax , say its 20% = 240 bucks...

    thus i have left over of $960...

    now can i then reinvest that 960 into the company as new capital?

    that for , the year ending the balance sheet will be $10,960?

    instead of...

    NP afta expenses etc = 1200... then u pay the 33% tax... and retain all earnings.. etc etc..

    is that possible?

    btw flat tax rate for companies = 33%?
    Oil - NZO
    REE - ARU
    Copper - EQN/OXR/TMR
    Iron- AGO/ADY/UMC
    Nickel-WSA
    PGM/Gold - PLA/VRE

  4. #14
    Senior Member
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    Nov 2004
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    Auckland, , New Zealand.
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    i guess another way could be... say 1200 profit ... and then tax it on 33%... then rest say its about 800 bucks. howeva dividend = 100%.. with imputation credits...

    so pay that back to me... 800 bucks n then i claim the imputation credits (ill be on 19.5% tax)

    and then its still ends up the same rite?
    Oil - NZO
    REE - ARU
    Copper - EQN/OXR/TMR
    Iron- AGO/ADY/UMC
    Nickel-WSA
    PGM/Gold - PLA/VRE

  5. #15
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    Jun 2004
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    Dazza

    If you are going to form a company you will need at least 2 directors and you will have to accept that the company is a separate entity and has a life of its own. Someone will have to fund the company to provide it with its capital and you may put money into the company from time to time as loans on wich the company might pay you interest (as the directors decide). You can also use a "drawings account" to put in or take money out but the tax dept will be interested in that because they would consider a drain on the drawings account to be wages in disguise and you would be taxed on that at your usual rate.

    My wife and I own a company which we could use for trading shares thru but we hav'nt bothered yet. But like others, we started out as "investors" 2 yrs ago but we are getting close to looking like traders now.

    Good luck

  6. #16
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    Oct 2003
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    Albany, Auckland, , New Zealand.
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    you do -not- need 2 directors
    you can fund it yourself and are limited only to the law and your imagination as to how this may be done
    tax status "Qualifying, or Loss Attributing Qualifying Company" will have the company taxed, not dissimilar to a partnership

  7. #17
    Senior Member
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    May 2000
    Location
    New Zealand.
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    quote:Originally posted by Dazza

    could u bear us some more info steve? how u set it up and run it etc? give factual numbers instead?

    while driving back home, i came up with an idea....

    ok say i start the company with $10,000
    You have a choice of either introducing it as Paid In Capital (ie equity) or as an advance to your Current Account

    now my main concern is, i will be investing $200 weekly to the company. how do i do that? under what transaction?
    The transaction would simply be adding $200 to your current account each week

    now i will have a debenture to parents of say 8% pa *say they gave me the 10k*

    end of financial year, say i made 2k from the trades. so i pay my olds 800 bucks *the 8%*.
    that leaves me with 1200.

    can i like transaction say give shareholders all profit, therefore $1200 is given to me... then i pay personal tax , say its 20% = 240 bucks...

    thus i have left over of $960...

    now can i then reinvest that 960 into the company as new capital?

    that for , the year ending the balance sheet will be $10,960?
    Yes, you may allocate the profit to yourself as a shareholder salary for tax purposes and this would be the current account balance if the company paid the tax on your behalf



    instead of...

    NP afta expenses etc = 1200... then u pay the 33% tax... and retain all earnings.. etc etc..

    is that possible?
    By doing it this way, the company would be taxed on the profit $1,200 @ 33% leaving $804 as Retained Earnings, which you have the option of paying out to yourself as a fully-imputed dividend


    btw flat tax rate for companies = 33%?
    Death will be reality, Life is just an illusion.

  8. #18
    Senior Member
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    Nov 2004
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    Auckland, , New Zealand.
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    cheers for the reply steve.

    i tink at this stage i mite just create another account - trading.

    now... im at national bank online share trading at the moment.

    i have heard from posters that i have to have a completely different account name.

    could u guys explain fully what this means?

    say my current national bank account is under the name Dazza.

    can my trading account be called - Dazza Trading Account?!?!?

    lawso some suggestsions pls?
    Oil - NZO
    REE - ARU
    Copper - EQN/OXR/TMR
    Iron- AGO/ADY/UMC
    Nickel-WSA
    PGM/Gold - PLA/VRE

  9. #19
    Member
    Join Date
    Oct 2003
    Location
    , Auckland , New Zealand.
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    Not sure I can help there, Dazza. I have a company that is now used only for investing and the Macq GEA a/c is in that name, with all investing/trading activities going through it. The Westpac a/c is in my own name and is used for all living expenses and non-investment income. Others may operate differently and be able to advise you but my system works fine for me - simple and uncomplicated, like yours truly.

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