Aussie here, Long story short - I am developing a mobile app

File: IMG_0639.jpg (59KB, 720x463px) Image search: [Google]

59KB, 720x463px

>>2813561

Seek actual financial (and legal) advice. Go see an accountant, not a financial advisor. Use the ATO website, you're looking specifically for "Income and Deductions for business".

Call ATO business line on 13 28 66.

I don't think you can write his expenses off on taxes. You can invoice and pay for his services however the fuck you like. How he deals with his taxes in america is up to him.

You can deduct certain expenses as a loss, if you are a sole trader, you are paying him as a business expense. Write a legal document that specifies a contract between yourself and him. It will detail the services you are paying him for, what he can expect in return (percentage, duration of contractual obligation to pay said percentage, etc).

Unless he has his own ABN/TFN in australia and you guys are a partnership, there's almost nothing he can do to stop you from terminating the need for his services, and if this goy isn't retarded, he would be pushing for a contractual agreement himself. I advise against ripping him off, don't be a dick. Just be very clear about what it is that you're paying him for and the value of what you bring to the table. Also, I advise you to retain ownership of the whole project. If he's just an artist/frontend developer, he can suck a dick imo. (in the nicest way possible).

>worked ATO general advice line for 2 years
>get legal and accountant advice, don't be a pleb
>especially if you're actually going to make any more than $5k a year with this shit.

>>2813561
destroy all your profits paying some retards with a paper degree 200 hour to tell you

>>2813703
Thanks for the advice mate, I'll be sure to take it all on board and to see an accountant.

He is someone I trust and he trusts me, so we wouldn't be a dick at each other in any legal regard. I understand the purpose of getting things in writing though.

Should I get all this set up as soon as possible? Or just wait to see if the app actually makes more than a dollar before worrying about the financial end of things?

>>2813766
until you generate a cent of income you probably don't need to do anything, however it's advisable to get an ABN and run as a sole trader as soon as you possibly can so that you can claim expenses on your personal income tax return.

Boom, 50% of your internet, your purchase for a PC in the last financial year, you can actually justify some of the expenses sent to old m8 yankee as another writeoff. Listen, I'm not a qualified accountant, I'm a phone pleb. Doesn't mean I don't know tax, I know it better than half the cunts who work in an accountant office. I just don't have the legal stones or qualifications to give you the proper advice you need. I will however lay out what I would consider in terms of strategy.

>get ABN as sole trader
>write expenses off related to anything computer/design/etc
>get financial advice once it starts turning into income (don't wait on this)
>research things like marketing, spreading, etc.

There's a lot that goes into running a business, you don't want to fuck yourself out of the opportunity to save money on your income tax return, but at some point or another, it's possibly an idea to run a company (100k profit a year? Who knows, I'm not qualified, srsly).

tl;dr get an abn if you haven't, then read the fuck out of the ATO website in terms of ITR deductions, and also educate yourself in business activity statements/PAYGI (pay as you go instalments).

As a sole trader you need to account for income that you make throughout the year by prepaying some tax in advance through PAYGI. You don't need GST as compulsory till you make $75k business income a year. You don't need PAYGW till you employ someone. etc, etc. at the moment, ABN and self education on things in the future.

>business tax roles (gst, paygw, paygi) - educate on this
>income tax returns, deductions, etc educate on this
>abn registration
>legal rights as IP holder

good luck my dude, paying it forward here. When you turn a profit, buy lunch for a homeless dude pls.

>>2813904
Thanks that helps a lot - I will re-read what you have written tomorrow when I am a little less tired and try to get on top of it.

Thanks again anon, you've been a big help.