Brisbane
When starting a business, one of the decisions you need to make before you commence trading is what type of business structure should you be in.
The business structure you decide on can impact your taxation, reporting requirements and asset protection, so it is always recommended to consult an accountant before you set up your business structure.
Sole Trader
For those who are simply starting a business themselves, often a sole trader option is chosen. A sole trader is a person who is the exclusive owner of the business, is entitled to keep all the profits after tax has been paid, but is also solely liable for all the losses of the business.
This structure is one of the cheaper options and less complex to run and if the business grows, can be easily changed to another structure.
Partnership
A partnership is relatively inexpensive to set up and operate. A partnership can be entered into if there are more than one individuals, company or trust starting a business but not as a company.
A partnership agreement sets out how the profits and losses are distributed as they may not be distributed equally among the partners.
Company
A company is a legal entity that is owned by its shareholders but run by Directors. This type of business structure is much more complex with more paperwork and reporting required.
There are greater costs involved to set up a company but a company structure offers some asset protection and attracts a company tax rate as it is taxed as a separate entity.
If you’ve decided to start a business, Accounting iCue can help you decide on the most suitable structure and ensure you are set up correctly right from the start.
We can help you to prepare business plans, with cash flow projections, budgets, and trading forecasts and even assess your finance requirements, advise on the best sources of finance, and draw up the necessary proposals.
onials
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PO Box 3243 Helensvale Town Centre Gold Coast QLD 4212 | |
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