Business Structuring

The most tax effective structure depends on your income and circumstances. Companies pay a flat rate of 25% for eligible businesses, which can be significantly lower than the top individual marginal tax rate of 45%. Trusts offer flexibility in distributing income to minimise overall tax across a family group. A sole trader structure is simpler but offers less tax planning flexibility as income is taxed at your personal marginal rate.

The cost of setting up a company in Australia includes ASIC registration fees, which are currently around $576 for a standard company registration, plus accounting and legal fees for structuring advice, a shareholders agreement and any other documentation required. Ongoing costs include annual ASIC review fees and the additional accounting and compliance work involved in running a company compared to a sole trader. The total setup cost typically ranges from $1,500 to $3,000 depending on complexity.

Restructuring a business involves changing the legal entity under which it operates. This can include transferring assets, updating contracts, applying for new ABNs or TFNs, considering capital gains tax implications and updating your accounting systems. It is not a simple process and requires careful planning to avoid unexpected tax liabilities. Our team can manage the process from start to finish.

Yes, you can change your business structure at any point. However there are tax and legal implications involved, including potential capital gains tax on asset transfers and stamp duty in some states. It is important to get professional advice before making any changes to ensure the transition is handled correctly and any tax concessions available are applied.