SOLE TRADER

A sole trader is the simplest business structure for a single owner business.

It is an individual running the business

- you run and control the business solely

 

  • Low initial start-up cost

  • Simple registration costs

  • Low ongoing compliance costs

  • Single tax return required as supplementary item in personal return

  • Tax on profit is applied at marginal tax rate of business owner

TRUST

A trust is a complex business structure used for asset protection and tax planning purposes. It is generally used for family who carry on business together - trustees as guardians run and control the business jointly.

  • High establishment costs

  • Complex legal and tax formalities

  • Medium ongoing compliance costs

  • Additional tax return required for trust

  • Advantage of discretionary profit distribution

  • Tax is applied at marginal tax rates of beneficiaries

PARTNERSHIP

A partnership is the simplest business structure for a multi owner business.

It is a group of people who carry on a business together - partners run and control the business jointly.

  • Low initial start-up cost

  • Simple registration costs

  • Medium ongoing compliance costs

  • Additional tax return required for partnership

  • Profit is evenly split between partners

  • Tax is applied at marginal tax rates for each business partner

COMPANY

A company is run by its directors and owned by its shareholders.

It has individual(s) running the business who are accountable to the shareholders.

- you may run and control the business solely as director and shareholder.

 

  • High establishment costs

  • Complex legal and tax formalities

  • High ongoing compliance costs

  • Additional tax return required for company

  • Annual ASIC compliance & costs

  • Tax is applied at the corporate tax rate 27.5%

  • Shareholders receive franked profit with pre-paid tax credits

OTHER START UP SUPPORT OPTIONS

Pilbara Accounting & Taxation Services Pty Ltd    |    ITP Accountants North West   

ABN: 71 161 102 950    |    Tax Agent Number : 24627922

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