Choose the right Business structure
Selecting the right structure for your business is quite critical specially because there are multiple options, all with different pros and cons.
The most common type of business structure in Australia are:
- Sole Trader
- Pty Ltd Company
- Partnership
- Trust
You need to consider the following main criteria while choosing the structure of your business:
- Tax implications
- Personal liability of the owner something goes wrong in the business.
- Growth plan: Whether you have plan to bring in additional investors in the business
- Cost of set initial set up and ongoing compliance cost
- Asset protection
Australian tax laws are complex and dynamic, and changing your business structure at some point in the future can trigger a capital gains tax or stamp duty if there is involvement of real estate property. One need to think about both short term and long run consequences while setting up a business structure.
At Lotus Smart, our team of Accountants are specialist in business structuring. We ensure you have the best legal structure (e.g company, trust, SMSF, SMSF bare trust etc.,) for your business or investment that will help you to successfully plan and implement strategies on tax minimisation, asset protection and wealth creation.
Give us a call on 03 9561 9922 to arrange for a free consultation.