Certified Practicing Accountant
Regi. Tax agent & Regi. ASIC Agent
jason@taxcodeaccounting.com.au
 
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Choosing the right business structure

 

There are advantages connected to a specific business structure you are operating in to. It is important that to take the best out of the business you choose the right business structure.

 

  Structure Advantages You need to Consider
1 Sole Traders

- Less legal & tax formalities

- Straight forward and less cost involved

- You gain full control

- Access to finance is limited

- All legal responsibilities are of yours

- Only you share gain or loss

2 Partnerships

- Again not so expensive

- Share best of your expertise

- Greater access to finance

- Profit or loss shared between partners

- Still personal liability for debts

- You need greater understanding

3 Companies

- Comparative easy access to finance

- You can retain or share profits

- Better prospects of tax planning

- Higher asset protection

- More expensive

- More compliances

- Few statutory liabilities

- Control separates from the owners

4 Trusts

- Limited liability

- Beneficiary and Trustee

- Asset protection

- Bit more expensive

- More compliance

- Loss remains in trust only

 

To understand in detail, please book an appointment today.

 

 * Source Australian Taxation Office