Business Structures

Choosing a suitable business structure is an essential first step for anyone commencing a new business enterprise. New owners need to familiarise themselves with the various options available and consider the advantages of each particular structure. The choice of structure may initially be driven by the number of persons who will be engaging in the new venture, for one person the decision may be simpler than the structural need for a group of owners.

The most common types of business structure commonly in use are:

Sole Trader – An individual can trade under their own name or by the use of a business name.

Partnership – A group of between 2 and 20 individuals or entities can join together to conduct a Business and share in the profits.

Trust (fixed or discretionary) – A structure by which a business is owned on behalf of Unit holders or beneficiaries, with a trustee managing the operations of the trust.

Company – A separate legal entity which conducts the business on behalf of its shareholders. Each of these structures has their place and relevance when considering what is appropriate for your needs.

Matters to be considered include:

  • Complexity of new business
  • Need for flexibility in ownership
  • Ease of entry and exit from business
  • Taxation consequences
  • Individual Liability of owners
  • Potential growth of business
  • Attraction of capital for expansion
  • Succession planning
  • Set Up Cost
  • Ongoing compliance costs

Our team has years of experience in assisting clients to choose the most effective structure within which to conduct their business operations.

If you have an existing business structure our team can advise you whether it is still suitable for your circumstances and review and advise you on the implications of a change of your business structure.

If you would like to discuss what business structure is appropriate for you, contact Dom or Grant today on 9634 6107 or get in touch here.

Behrens Rowley – giving you better business advice.

Not all accountants and financial advisors are created equal! If you’d like better business and financial advice starting today, we’d be pleased to help. You can give us a call on 9634 6107. If there’s anything we can do to help you get on with the business of growing your business, please give Dom or Grant a call on 9634 6107.

Book your Business Review session now.

Behrens Rowley – giving you better business advice.

Not all accountants and financial advisors are created equal! If you’d like better business and financial advice starting today, we’d be pleased to help. You can give us a call on 9634 6107. If there’s anything we can do to help you get on with the business of growing your business, please give Dom or Grant a call on 9634 6107.

Book your Business Review session now.