Setting up a business correctly is the best way to make sure you’ve built the foundations for future success. While that might sound obvious, in the excitement of getting to market too many businesses are set up without first weighing up the pros and cons of each structure.
If you can choose your business’s structure with authority and purpose from the very beginning, then you’ll be far less likely to find yourself in a tricky position down the track.
The main structures used in Australia are a sole trader, partnership, company and trust. Becoming a sole trader is a great choice for individuals who aren’t planning on hiring any employees, and want to keep things simple. Similarly, a partnership is perfect for those who want an easy way to go into business with a friend or family member.
Setting up as a company is a popular choice, especially since revenue is earned by the company, rather than the shareholders, meaning there are often company tax benefits. In a company structure, the liability of shareholders is limited, too. Finally, a trust structure allows assets to be protected, flexible income distribution, and reduces personal liability.
With Australian tax law growing increasingly complex, it’s important that your business has a great legal team behind it. Whether you’re just getting started with registering your company or you’re planning a complete restructure, OpenLegal can help. We tailor our advice to your specific business challenges, to make sure that whatever we recommend, it fits your needs perfectly.