Business Structures

Getting the business structures right is essential to business success and taxation planning.

Getting it right the first time is always more cost-effective than setting up the wrong business entity to get it up and running without careful understanding, which could result in a costly exercise.

At Hedland Accounting & Finance, we analyse and ask the right questions to determine the suitable structure.

Check out the following structures to see which one would best suit your business goals:

Sole Trader

  • A quick and cheap business setup.
  • Sole traders are personally liable for financial or tax debts.
  • Sole traders are taxed as an individual.


  • An easy structure to set up and run.
  • Made up of 2 or more people who distribute income or losses between themselves.
  • Easy for either partner to dispose of their interest if they choose to.
  • Partners can be personally liable for financial or tax debts.


  • Separate legal entity.
  • Your personal assets are protected from any losses incurred by the company.
  • Increased flexibility for tax planning.
  • You can introduce shareholders, and equity and raise capital for the company.
  • Gives your business access to a capped tax rate.

Family Trust

  • More options for income distribution
  • Can be advantageous for minimising tax
  • Operate the business with more privacy
  • Protects the business from a beneficiary’s bankruptcy
  • Complex to operate and dissolve.

Unit Trust

  • Suitable for those looking to start a trust with multiple owners
  • Usually started by multiple business owners who are not family members
  • Additional unit holders can be added as the business grows and new owners buy in
  • Money can be withdrawn without any tax consequences
  • A less complicated business structure than a company