At Banyan Consulting, we highly recommend careful consideration when selecting the business structure for your business. Your choice of structure can significantly impact the future of your business, making it important to choose a structure that aligns with your long-term goals. Switching structures later can be expensive and may incur taxation costs, including capital gains. To make the right choice, we advise taking into account several factors such as the potential profitability of the business, the taxation position of stakeholders, and the industry risks involved. Our experienced team at Banyan Consulting can guide you in selecting the best structure for your business, providing you with the strategic advice needed to make an informed decision. Business Planning and Structures.
Business structures to consider….
- Sole Trader
Sole traders are individuals operating a business trading either under their own personal name or registered business name. For taxation purposes the sole trader is responsible to pay any taxation on profits as if it their own income. Some of the benefits of acting as a sole trader is you make all the decisions and directions of your business and it is quick and easy to set up. - Partnership
When two or more people operate a business with the intention to create a profit, a partnership can be formed. Partnerships are governed by state laws and any partnership agreement that has devised to specify any partnership arrangements. A partnership is considered as a separate entity and therefore must have a Tax Fie Number and submit an annual tax return. - Company
Being a legal separate entity from any shareholder and is governed by Company Law administered by the Australian Securities and Investments Commission (ASIC). Benefits of companies include a form of asset protection – separating personal assets from the debts of the company. - Trusts
Not being a separate legal entity, a trust refers to an obligation between persons and property for the benefit of beneficiaries. Trusts can provide a benefit of splitting income to achieve tax benefits and can assist in protecting family assets from various liabilities.
Business structures can be a mine field, getting the right advice is imperative for your future success. Contact our team at Banyan Consulting today to get the right advice in your business structure. Business Planning and Structures.