I have got an contract job offer through a job agency. There are two options: 1. PAYG Employment contract: agency will pay me as normal employee: daily rate + superannuation 2. Contractor agreement: I will register a company and have professional indemnity insurance. Pay rate equals daily rate + superannuation + GST. From my personal point of view, I prefer contractor agreement option thought there are cons and pros of contractor agreement: Cons: 1. As the annual income exceeds $100K p/a, I can benefit the company profit tax of 30% instead of personal income tax of 37.5% 2. I can claim the expenses for traveling from registered office to client sites or other business relating expenses. Pros 1. Paper works for annual statements required by ASIC 2. Annual statements fee ($246 pa for proprietary company), professional indemnity insurance ($??) 3. Book keeping/accounting works 4. Deal with ATO Are there anythings that I have to consider when setting up a company? Does ASIC requires a compulsory professional accountant for a company book keeping or I can do book keeping by myself? If I use an accountant, how much does it book keeping cost for an IT contractor?