New business set up

My brother has started his own business specialising in batteries. He has a great niche and is already making a solid income with a few Facebook and Gumtree ads. He is great at making stuff but doesn’t have the motivation or knowledge to ramp up the marketing so wants me to do all the sales and marketing for him. It's a great opportunity for me as it's a side hustle that requires no capital outlay or ongoing expenses (other than my time), plus I get to help him increase his income.

His company would make the product and offer the warranty, as well as provide tech support and do the shipping etc – all I would do is market + sell them on Facebook/Gumtree/eBay/Amazon and a custom made eCommerce website.

I just created a new trust with corporate trustee which I set up for holding shares long term, and my accountant suggested I use this entity to start with. Any income could be distributed to my other trust which has substantial paper losses.

In terms of how I set it up, I guess he would own the ebay, Amazon accounts and website etc - I would just log in and run them for him, and at the end of each month I would invoice him for a sales/marketing fee based on sales.

Does this make sense? Would we need to have a contract in place?

I'm not sure whether there would be any other tax advantages for me (ie additional items I can claim that I don't currently)?

 

did you get advice on the anti-avoidance provisions?

 

GST
Legal liability
Agent liability