When it comes to selecting the most appropriate structure for your business we always recommend you ‘start with the end in mind’. Australian tax laws are complex and changing your business structure at some point in the future can trigger a capital gains tax event that could prove costly.
Whenever we provide advice on business structures we always take into account issues like:
- Minimisation of Income Tax
- Maximize Asset Protection
- Allow for the admission of New Business Partners or Investors
- Comply with all Legal Requirements in your Industry
- Future entitlement to Discount Capital Gains Tax Concessions
- The simplest type of business structure as the individual owns the business
- Low cost option and quick to establish
- No tax or legal separation between the individual and the business
- You maintain control over the business operation and the direction
- Provides minimal asset protection
When evaluating the right business structure you need to consider the likely profitability of the business, the current tax position of all stakeholders and the risk profile of your industry. In some cases you might also need to consider if it will be easier to do business in your industry as a sole trader or company. As a consequence, we often find the business structure is a compromise based on the relative importance of these issues.
When it comes to business structures there are a range of options. The most common structures in Australia include
- Sole trader
- Family (Discretionary) Trust
We will guide you through the decision making process based on your business needs to recommend the most suitable structure for your business venture. This will ensure that your business is set up for success from the start.
Why not contact us today to discuss your business structure and get your business started.