For Business · Set-up
Business Structuring
The structure you trade through decides how much tax you pay, what a creditor can reach and what a sale will cost you. Get it right at the start.
Overview
Structure is a decision you make once
Most business owners pick a structure in the first week and never revisit it. A sole trader ABN is quick, but it exposes personal assets and caps your planning options. A company gives you a 25% base rate entity tax rate and limited liability, but locks profits behind Division 7A. A discretionary trust lets you stream income, but only if the deed and the resolutions are right.
We model the options against your actual numbers rather than a template. You see three years of projected tax under each structure, the asset protection each one gives you, what it costs to run, and what it will cost to unwind when you sell. Then we implement the one you choose, including registrations, deeds and documentation.
How we help
- 01
Structure comparison on your numbers
Sole trader, company, trust and partnership compared on tax, asset protection, administration cost and exit.
- 02
Three-year tax modelling
Projected tax and cash retained under each option, including profit extraction and dividend or distribution timing.
- 03
Division 7A and PSI risk review
Loan accounts, unpaid present entitlements and personal services income tested before they become an amendment.
- 04
Restructure rollovers
Where a structure has outgrown the business, we apply the small business restructure rollover to move assets without triggering tax.
- 05
Documentation and registrations
Company incorporation, trust deeds, ASIC and ATO registrations, and the minutes that make the structure hold up.
Resources
Key figures
- 25%
- Base rate entity company tax
- 30%
- Standard company tax rate
- same day to two business days
- ASIC company registration
- 8.77%
- Division 7A benchmark rate
The base rate entity rate applies where aggregated turnover is under $50 million and no more than 80% of income is passive. We confirm which rate applies to you before any modelling.
Not sure your structure still fits?
A structure review takes about an hour and tells you whether it is worth changing.
FAQ
Business structuring questions
A company caps tax at the company rate and gives you limited liability, but profits are locked behind Division 7A. A trust lets you stream income to beneficiaries on lower marginal rates and access the 50% CGT discount, but it cannot retain profits cheaply. Many owners end up with both.
The usual triggers are a partner joining, taking on premises or staff, profits outgrowing your marginal rate, or a sale within three to five years. If any of those are on the horizon, review the structure now while a rollover is still available.
A structure review and modelling engagement is a fixed fee agreed before we start. Implementation is quoted separately because it depends on how many entities and registrations are involved. You will not receive an invoice you have not already approved.
Yes, but it gets more expensive as the business grows. The small business restructure rollover can move assets without an immediate tax bill if you meet the conditions. Once goodwill and property are inside the wrong entity, options narrow.
A corporate beneficiary of a trust. The trust distributes surplus income to the company, which pays tax at the company rate rather than the top marginal rate. It only works if the entitlement is actually paid or put on complying Division 7A terms.
Speak to an accountant
Free 30-minute consultation.
No obligation. We’ll review where you are and tell you what we’d do.
+61 451 114 862Book a consultationThis page is general information only. It does not take your circumstances into account. Speak to a registered tax agent before acting on anything here.
Related services
Often paired with structuring.
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