Business Structures
Major Drivers when choosing a structure
- Legal minimisation of tax, including reduced exposure to tax on any future capital gains.
- Loss utilisation
- Asset protection
- Other commercial considerations (financing, industry or professional association requirements)
- Family Considerations
- Flexibility to allow for changes (to allow for parties to enter or exit the business)
- Stamp duty considerations
- Ease of understanding and administration
The most common types of business structures in Australia are:
Changing business structures
It is important to know that you’re not locked into one business structure for the life of your business. As your business grows and changes, you may decide to move to a different type of business structure.
Before changing structures, you need to be aware of the differences and obligations for each.