One of the key decisions you’ll make when starting a business is its structure. Your choice of structure will depend on the size and type of business, your personal circumstances and how much you plan to grow the business.
Your business structure will have an impact on your:
- responsibilities as a business owner
- tax liabilities
- potential personal liability
- asset protection
It will also have an impact on the ongoing costs and the volume of required record keeping.
In an established business, the review of your structure should be an ongoing process, to ensure it is still appropriate for the circumstances. On occasion a restructure is required to ensure asset protection, tax effectiveness or to comply with changing regulations. At times it may even be a strategy to stabilise an underperforming business to provide a solid platform to return the business to profitability.
The ability to restructure with minimal taxes and other costs can be challenging, but possible if planned correctly. Our professionals have experience with the various concessions available to stamp duty, GST and capital gains tax to ensure there are no hidden costs along the way.
At Thorntons our team can assist regardless of what stage your business is in, from choosing the correct starting structure, to review of your existing structure, to planning and implementing a restructure.
Common business structures in Australia