Operate your business to its fullest under the right structure!
Types of Business Structures?
There are many types of legal structures that businesses can operate under in Australia.
Depending on the type of business you run, our team will advise you on the most suitable legal structure after getting to know both you and your business.
Some of the most commonly used business structures for small businesses are:
- Sole Trader
- Joint Venture
As your business grows or changes, you should review your legal structure to make sure it is the most effective for your needs. We can advise you on the best fit for your business and ensure you are taking advantage of the benefits that best fit your situation.
Tips for Choosing The Best Business Structure
Some initial questions to consider when choosing the best business structure for your business are:
- How much control do you want and need in your business?
- How much personal liability protection will you need?
- What is the most tax-effective result that I can expect?
- Do you want to be covered by WorkSafe?
- Are you likely to see additional investors for the business in the future?
- Is there a possibility that you will want to sell the business in the future?
The answers to these questions are only the starting point and will determine where we go next and help to work towards the best structure to give you and your business the chance at success.
Why Is It Important To Choose The Right business structure?
It is important to understand in a structure what the compliance rules are and what you can and cannot do in regard to this.
Your business structure identifies how you operate and it will impact things such as:
- Who can make important decisions;
- Tax advantages and tax disadvantages;
- How profits and losses are shared;
- Legal obligations and costs;
- Who are the real business owners; and
- The assets you hold.
Choosing the right business structure will have significant effects on its legal and operational risk, asset protection, legal obligations, legal costs and clientele. Your business structure isn’t something that you should take a gamble on. It is important to see a professional, like the team at Canny Accounting and have it set up appropriately, with all the correct legal and taxation registrations and be educated as to how it all works.
Learn More about Business structures
When was the last time you had a business structure review?
If you would like more information on which structure is going to best suit you and your business or if you think a review, download our free guide to help gain a better understanding.