BUSINESS SERVICES – SETUP & RESTRUCTURING

Whether starting a new business or restructuring an existing one the choice of business structure should only be made after careful consideration of your circumstances.

Entities commonly chosen to carry on a business include:

• Company
• Trust (Discretionary, Unit, or Hybrid) 
• Partnership
• Sole Trader

 
A typical business structure often utilises more than one of the above.

The choice of structure involves both tax and non-tax considerations, including (but not limited to):

• Tax rate
• Ability to utilise the small business CGT concessions 
• Ability to access various government assistance including the R&D Tax Incentive
• Ability to apply losses against other income
• Stamp duty considerations
• Asset protection
• Administration costs
• Flexibility in issuing and transferring interests

To further complicate matters the interaction of the ATO’s anti-avoidance rules with certain businesses can mean that a perceived tax benefit of a particular structure is illusionary.

Waterson Accounting has extensive experience in assisting clients choose the optimal structure for their business.