Sole trader
One individual owns and operates the business. Business income and expenses are reported in the individual return, and the owner is personally responsible for business debts and losses.
BUSINESS & ACCOUNTING · STRUCTURE
Business
Structure Advice
Structure advice for new and existing businesses, considering tax, responsibilities and exposure to liability.
Discuss your business structureCampbelltown · Established in 2010HOW WE HELP
A structure suited
to your circumstances.
For people starting a business and owners reconsidering how an existing business operates.
KPA discusses the tax implications, liability considerations and ongoing administration of different arrangements. The choice depends on your circumstances; a structure does not automatically guarantee tax savings or protection from every liability.
SUPPORT WITH THIS SERVICE
Partnership
Two or more people or entities carry on business together and share income or losses. General partners can be personally liable for partnership debts; the type of partnership matters. A written partnership agreement can set out roles and responsibilities.
Joint venture
Two or more parties work together for a specific purpose or project rather than as an ongoing business. The joint venture agreement sets out the arrangement.
Trust
A trustee holds assets or carries on business for beneficiaries. A trust deed and annual administration are involved, and the trustee is responsible for operating the arrangement.
Company
A separate legal entity registered with ASIC. Shareholders generally have limited liability, but guarantees and directors’ obligations can create personal exposure. Setup and ongoing administration are more involved.
- 01 / UNDERSTAND
Discuss ownership, activities and business goals.
- 02 / COMPARE
Consider tax, liability and administrative differences.
- 03 / PLAN
Agree the structure advice and any connected setup work.
KEY CONSIDERATIONS
Tax is one part of the decision.
Structures differ in ownership, control, tax treatment, costs and legal responsibilities. Company registration does not remove a director’s obligations. We discuss the accounting and tax position; legal documents and liability questions may also need legal advice.
BEFORE WE TALK
A useful starting point.
Bring a general description of how the business operates or will operate. For an existing business, explain what has changed and why you are reviewing the structure.
Contact KPA before sending financial records or sensitive documents.
Records to have in mind
- Current or proposed business activities
- Ownership and decision-making arrangements
- Existing entity and registration details
- Current accounts and the scale of the business
- Assets, financing and liability concerns you want to discuss
- Your goals and any proposed changes or transactions
COMMON QUESTIONS
Before you enquire.
Is this only for a new business?
No. KPA also advises existing business owners who want to reconsider their structure as circumstances change.
Do you discuss joint ventures as well as companies and trusts?
Yes. The structures considered include sole traders, partnerships, joint ventures, trusts and companies.
Does a company remove all personal liability?
No. A company is a separate legal entity, but personal guarantees and breaches of directors’ obligations can expose individuals to liability. The facts and legal obligations need consideration.
TALK TO KPA
Consider the structure before the change.
Tell us how the business operates and what you want to review.