Joe Sixpack: Spent $20k setting up a business idea... he registered a Business Name (EVO) and got an ABN (Sole Trader) with GST.
Joe found it really farking hard securing contracts as a Sole Trader, so he decided to incorporate.
Joe has/had a couple of clients and invoices them directly; his invoices have the business name EVO on it.
He gets Business Activity Statements from the ATO to "EVO".
In his last tax return he had $18k worth of losses on EVO, and consequently has a deferred loss. He's invoiced ~$6k this tax year.
Questions:
1.- If he incorporates he will be Director & Secretary with 100% of shares. Can he still invoice as a Sole Trader?
2.- What happens to his now ~ $12k of losses from being a Sole Trader?
3.- Can he be a subcontractor for the new EVO Pty Ltd?
Eg: Telstra has a contract with EVO Pty Ltd. Joe does the work > Telstra payment goes to EVO Pty Ltd > Joe invoices EVO Pty Ltd.
4.- Joe also has ~$10k capital loss from 2004... can he pay himself minimum wage and take the rest in dividends and claw back some of the CG loss he's been carrying around for so many years?
5.- What's the best way to limit tax liabilities in a 1 man Pty Ltd?
Thanks 
PS: Joe doesn't want to ask an accountant cos they gave him the wrong advice with the whole Sole Trader BS. He also values Seabreeze poster opinion more than the fee driven bean counters.
Only way I know reduce tax liability is to use a family trust to distribute profits/dividends from the company to lower tax bracket family members. You can't pay them a wage as such, it has to be from direct profit. You can setup a hybrid trust for less than $1k if you talk to the right people.
As far as I know, you can't get out of tax liability by paying company tax only on profits. Its like shares, the company either pays 30% tax and you get a credit (franked), with the rest to pay in your personal income tax return. Or you pay all the tax on the profits in your ITR (unfranked). Happy to be proven wrong on this!!!
Joe really needs to see an accountant, its actually a little too complex than giving a correct answer to all complex, depends on his circumstance, family, intentions amongst other things.
If he's in NSW i can recommend a couple of good ones, I deal with them all day long 
Greg
Now Joe is an employee of the Company, the Company will have to pay his workers comp insurance his super, long service, business insurance and have to pay the 30% company tax rate.
I am an employee of my company and I subcontract to other firms not to my own company because the Govt have strict rules on what constitutes a subbie, I think its something like more than 75%? of your income cannot come from one company otherwise you are classed as an employee
Does JOE produce a product or a service? Or just overinflating goods that can now be purchased internationally?
Joe Sixpak might want to check into whether profit made from work contracts can be offset by losses made on the share market. As far as I know they can't.
If I understand it correctly then capital losses on shares can only be offset by capital gains in shares.
Joe needs to stop pussy footing around and devout his time to working harder and making more money (to make a gain not a loss) and get a good accountant. 
Now we're getting somewhere...
Sell equipment to new company 
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Split pay the guard dog.
