Having the right business structure at the beginning will aid you in tax minimisation, growth of the business and allow for future business and personal opportunities.
There are pros and cons that need to be weighed up concerning each option, and precisely how you’re planning to run your business is also a main contributing factor.
We can setup the right structure at a cost effective price:
And arrange the appropriate registrations:
We are also more than capable of assisting with:
So what is the right business structure for you? Well, as all businesses are different, that depends on several things. The very best option for you prior to registering your business is to speak with us at Trilogy Tax on (07) 5499 9973, as we’re able to discuss things in-depth with you so you make the decision that’s most suited to your particular needs. For a step in the right direction prior to your discussion with our team, here are a few pointers about each of the structures:
With minor amounts of legalities and taxation issues to take into consideration, a sole trader is probably the easiest and cheapest of the four to set up. Also, there’s no requirement for payroll tax or super payments to yourself as you’re not seen as an employee. However, if any issues arise in your business, you’re personally liable in a legal sense, which means your personal assets are exposed.
A business where two (or more) individuals work together formally in order to make profit. Perhaps the biggest advantage is that the capital is greatly reduced when starting out (and the risk is split between the partners).
But disagreements can be a common occurrence which can prove quite messy unless the appropriate conflict resolution plans are in place.
Forming a company means you’re actually creating a legal entity, and it may end up a costly process. The benefits can be great, though – the income tax you pay as a director is generally set at 30% (company tax rate in Australia). The potential for tax concessions is increased, and it’s the company’s assets (not yours) that are liable should anything go wrong.
Quite an intricate road to go down not just in terms of setting up, but also the administration. It’s also regulated extensively, but will provide much more privacy than, say, a company. Using a trust, it’s much easier to distribute income, which means you’re looking at more potential benefits with taxation.