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.
Partnership
- 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.
Company
- 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- Money can be withdrawn without any tax consequences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