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311 posts

Ultimate Geek
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Topic # 58878 22-Mar-2010 17:30
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Hi,


I'm currently working full time but I want to earn some extra money in my free time for some small projects.

I want to start a small company that will (hopefully) only make an invoice a month, maybe two in the following year or so.
I'm new in New Zealand (18 months and counting!) and I don't quite know the law and what to do and where to do.
I'll take a quick walk to the library tonight to see if I find some books about this but if you could point me to the right direction it would be much appreciated.

Is an accountant required for a micro-business like this one or will I be able to do the accounting bit?

Many thanks in advance. 

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204 posts

Master Geek
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  Reply # 309860 22-Mar-2010 17:39
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Hi TCP,

Setting up a company costs around N$400 and up, and can be done in a day.
Check out www.companies.govt.nz for more info, and name lookups etc.

I would use an accountant, as they are experts in their field (and I personally suck at accounting) Their fees are tax deductible.





I would love to change the world, but they won't give me the source code

#BOFH

1602 posts

Uber Geek
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  Reply # 309867 22-Mar-2010 17:52
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As above creating a company as LLC costs money, the other option is to create a business as a sole trader. There are no costs involved and you can use your own IRD number. You will still need to do the books but can easily do this yourself!! The big things is to keep it separate from your personal details.

You need

- A separate bank account
- Book Keeping stuff (excel will do)
- Keep Bank Records
- Keep invoice records

The IRD has a good sub-website with all the info you need!!

486 posts

Ultimate Geek
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  Reply # 309897 22-Mar-2010 19:14
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quandum: Hi TCP, Setting up a company costs around N$400 and up, and can be done in a day.


More like $NZ160.000!




pɐǝɥ sıɥ uo ƃuıpuɐʇs

1241 posts

Uber Geek
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  Reply # 309914 22-Mar-2010 19:47
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Ring up your nearest Inland Revenue office and arrange to meet with them to discuss your needs, they will tell you what you need to know for tax purposes, and give you a lot of helpful advice.





---
James Sleeman
I sell lots of stuff for electronic enthusiasts...




311 posts

Ultimate Geek
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  Reply # 310103 23-Mar-2010 10:30
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Thanks all for the great answers.
What would be an average price to pay to an accountant for something as small as described above?

Thanks.

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Uber Geek
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  Reply # 310124 23-Mar-2010 11:03
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It is really not worth getting an accountant involved if you can avoid it.
A little more insight on what you are doing with your business, why you think you need to set one up, may help people answer your questions.

204 posts

Master Geek
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Reply # 310160 23-Mar-2010 12:09
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Filterer:
quandum: Hi TCP, Setting up a company costs around N$400 and up, and can be done in a day.


More like $NZ160.000!


From where? :-) I need to set up a new one....




I would love to change the world, but they won't give me the source code

#BOFH

486 posts

Ultimate Geek
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  Reply # 310213 23-Mar-2010 13:45
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quandum:
Filterer:
quandum: Hi TCP, Setting up a company costs around N$400 and up, and can be done in a day.


More like $NZ160.000!



From where? :-) I need to set up a new one....

DIY on companies.govt.nz




pɐǝɥ sıɥ uo ƃuıpuɐʇs



311 posts

Ultimate Geek
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  Reply # 315438 6-Apr-2010 18:26
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Hi,

Thank you for your valuable answers.

I have just incorporated the company today and I went looking for a business bank account.
The fees are completely outrageous, except kiwibank which are very good but they don't offer a Visa Debit option and I have to apply for a credit card. They asked for 2 years back of documents and the guy on the phone was a bit puzzled when he heard that the company was incorporated today. 

However, I was speaking with a friend who's sort of in the accounting business and he said that for his own small business he uses his personal account and that this is legal but the bank might be a bit upset if you make a lot of transactions.

Would this be true? I'm thinking about opening another personal account with ASB (just to keep my personal life separated) and use it for my small business which will make just a few invoices per month and maybe make a few hundred dollars a month profit.

The ASB fees for banking are extremely high and cannot afford it at this stage.


Anybody has any details on this?

Many thanks.

PS: The company will sell a few minor thins I'm going to import from the states off trademe, this will be the main activity. 

486 posts

Ultimate Geek
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  Reply # 315445 6-Apr-2010 18:36
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tcpdump: Hi,

Thank you for your valuable answers.

I have just incorporated the company today and I went looking for a business bank account.
The fees are completely outrageous, except kiwibank which are very good but they don't offer a Visa Debit option and I have to apply for a credit card. They asked for 2 years back of documents and the guy on the phone was a bit puzzled when he heard that the company was incorporated today. 

However, I was speaking with a friend who's sort of in the accounting business and he said that for his own small business he uses his personal account and that this is legal but the bank might be a bit upset if you make a lot of transactions.

Would this be true? I'm thinking about opening another personal account with ASB (just to keep my personal life separated) and use it for my small business which will make just a few invoices per month and maybe make a few hundred dollars a month profit.

The ASB fees for banking are extremely high and cannot afford it at this stage.


Anybody has any details on this?

Many thanks.

PS: The company will sell a few minor thins I'm going to import from the states off trademe, this will be the main activity. 


I could only get a credit card for my company as I had a personal relationship with ASB for the last 10 years, I was told the same that normally you need to have been in business for 2 years before they will give you one.

What is extremley high? I pay $5 a month + standard credit card fees + some minor transaction fees.




pɐǝɥ sıɥ uo ƃuıpuɐʇs



311 posts

Ultimate Geek
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  Reply # 315452 6-Apr-2010 18:42
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I'm also a fan of ASB (I use them for my personal account) and also they have a Visa Debit option.

The Fastnet Business is $100 for establishment and $30 / month and this has put me down, I don't mind the $5/month account fee.

 

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Uber Geek
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  Reply # 315453 6-Apr-2010 18:46
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tcpdump: 
However, I was speaking with a friend who's sort of in the accounting business and he said that for his own small business he uses his personal account and that this is legal but the bank might be a bit upset if you make a lot of transactions. 


Do not use your personal bank account, it will get you in a mess because your business and personal finances are no longer separate. 

The only reason KB will want all those documents is because you have asked for a credit card.  Don't get a credit card, if they can't give a debit card on the account, then you(r company) could just get a LOADED card and use that for your online purchases.

Make an appointment to go see a business banking advisor at Kiwibank, hopefully in your town/city there is a Kiwibank business banking branch, as these are the guys to talk to about setting up a business account.  






---
James Sleeman
I sell lots of stuff for electronic enthusiasts...




311 posts

Ultimate Geek
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  Reply # 315456 6-Apr-2010 18:52
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sleemanj: 
Do not use your personal bank account, it will get you in a mess because your business and personal finances are no longer separate. 


Let me rephrase: a _new_ personal account that I will use only for the business purposes and it will be personal just from the bank point of view.

 

486 posts

Ultimate Geek
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  Reply # 315458 6-Apr-2010 18:55
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I suspect you were quoted for 'Fastnet Business' not 'Fastnet Classic' ring up and ask again

"With FastNet Classic, our personal and small-business customers can do most of their banking in real-time, when and where it suits. That could be at home, at work or anywhere in the world with internet access."

My business accounts are accessable from my standard (personal) internet banking account, but listed seperately and fees are the same as a personal account - pretty sure this is what you are after




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311 posts

Ultimate Geek
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  Reply # 315459 6-Apr-2010 18:56
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That's correct, but can I use the fastnet classic (free one) for a business account?

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