Like a tree grows strong if it has strong roots, a successful business also needs sturdy foundations. The structure of the business, which is often ignored by newcomers, is a key parameter that plays a vital role in its growth. It isn’t only about the ATO title but you need to ensure if you need to register a trust, a company, a partnership firm, or a sole tradership. Let’s dig deeper to understand more about the topic.
- Partnership: In this type of firm, liabilities, and responsibilities are divided among partners. It is often a choice when family, friends, or partners plan to run a business together. Partnerships are simple to establish and less expensive. You may or may not create a legal written agreement of partnership to start.
- Sole Trader: Don’t worry if you don’t have a partner. You can still register a firm individually. This choice is the least expensive as well as the simplest one to start a business. Moreover, it also doesn’t bring many tax and legal formalities. However, being a sole trader, you are liable for all business aspects.
- Trusts: Things get complicated when you are going to launch a trust. But if you manage things the right way, it brings in huge tax benefits. Trusts are costlier to establish as they need a formal deed and yearly administrative tasks.
- Companies: Registering a company is also tedious. The one who operates is termed as the director while the owners are its shareholders and members. Everyone accountable has a limited liability towards the debts. Companies involve huge administrative costs and setup, have separate tax identification and rates than individuals.
Based on your objectives and targets, Sydney CBD accounting services can enable you to make the right decision with proper guidance.