How to structure your business is a huge decision. Whether you are just starting up or are growing and need to restructure your business we can help.
Omnis Group are experts at business structuring advice. We will take the time to discuss with you your business, your plans and expectations so that we can recommend a structure that will not only work for you now but also in the long term.
We will also consider the tax implications and legal requirement as to ensure that the structure we recommend really does suit you and your business.
How you decide to structure your business will depend on several factors, how big it is, who is involved in the business, the financial protection you want for you and your family, as well as your future plans for the business. This decision can have a significant impact upon how you run the business and how complex you accounting requirements will become.
We are experts at business structuring and will be able to advise you on the best business structure to meet your needs so make sure you talk to us before you make any final decisions.
Remember business structures can change as your business grows and changes, so where you start off is not necessarily where you will end up.
It is important you understand your options and the implications of your decision, if you choose a company or a trust you can limit your liability i.e. how much you would personally be liable for in the event of business closure, however you also open yourself up to strict legal requirements and regulations.
If you are starting out in business or want to review your existing company structure give us a call today. We can catch up for a coffee discuss your needs and see if we can assist you.
The 4 most common business structures used here in Perth are detailed below;
- Sole trader
- sole trader is the simplest form of business structure. It is also relatively easy and inexpensive to start and maintain.
- Many sole traders choose to trade under their own name – for example, Karen Smith – while others opt to register a business name which must be done with Australian Securities and Investments Commission (ASIC).
- A partnership involves two or more people (but no more than 20, with some exceptions) going into businesses together in order to make a profit.
- In most cases a partnership will need to register a business namewith the Australian Securities and Investments Commission (ASIC) unless it uses the surnames of all the partners involved.
A company is a separate legal entity capable of holding assets in its own name and conducting business in its own right. A company can also sue and be sued.
Shareholders own the company while directors run the company. In many cases company directors are also shareholders, along with company employees.
To become a company, an entity must:
- be incorporated under the Corporations Act 2001 (Commonwealth Act); and
- be registered with the Australian Securities and Investment Commission
- Unlike a company, a trust is not a separate legal entity. Trusts are often used in connection with running a business for the benefit of others.
- A trust is a structure where a trustee (an individual or company) carries out the business on behalf of the members (or beneficiaries) of the trust.
- Family businesses are often set up as a trust so that each family member can be made a beneficiary without having any involvement in how the business is run.