Business Structures and Asset Protection – Tax Store Osborne Park

How To Choose The Right Business Structure?

Choosing the right business structure is important for tax planning, asset protection and compliance costs. The following considerations should guide your decision:

  • Complexity of your business
  • Client base
  • Exposure to personal assets
  • Future plans
  • Set up and compliance costs

The most commonly used business structures in Australia are Sole Trader, Company, Partnership and Trusts.

Here’s What You Need To Know:

Sole trader – this is the most simple business structure with minimal setup and maintenance but you will be personally liable for all business decisions.

Company – this will give you better asset protection and less personal liability but the setup and maintenance costs are higher.

Partnership – this is easily established with low costs and greater borrowing capacity but each individual is liable for the actions and debts of the partner.

Trust – this can give you flexibility and limited liability but the structure can be complex and expensive.

You may be able to use a combination of structures, for example a company with a trust as a shareholder, or a trust with a company as a corporate trustee.

Choosing a suitable business structure is essential for a start-up, but established businesses that have seen significant growth or have plans to scale their business may also benefit from a structure review.

Need advice on choosing the optimal business
structure for your needs?

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