Business setup get it right from the start

+ Sole trader – for when an individual that is trading on their own.
+ Partnership – when a number of people or entities are running a business together, but not as a company.
+ Company – when a business is set up as a legal entity separate from the owners.
+ Trust – an entity that holds property or income for the benefit of others.
+ Co-operative – a member-owned business organisation with a minimum of five members.
+ Incorporated association – an entity that has usually been set up for charitable, recreation or cultural purposes.

Source: Business Victoria

Most businesses that are just starting out are unlikely to know the answer to this question.  So if you are unsure, it is best to give your accountant a call.  The structure you choose may have implications down the track on how you need to report and prepare your tax and can be quite costly if you get it wrong.

If you need advice, on the best business structure for you, we offer an obligation-free 15 consultation to answer any questions that you may have.

No, if you are confident that you know the correct business structure to choose you can go it alone.  But be mindful that whichever structure you choose at the start can impact compliance, how much tax you pay and the amount of admin needed.  So, if in doubt, it is best to speak to an accountant that is up-to-date on all the pros and cons of the different business structures.

There are generally two types of trusts, Discretionary Trust & Unit Trust. In a discretionary trust, the trustees determine the split of income between beneficiaries.  For a unit trust, income is split based on the percentage of Unitholding.