Would you like to carry on your business as a sole trader, enter a partnership or create a company or trust? There are advantages and disadvantages to consider for each option. Choosing your business structure is an important decision, so you need to investigate each option carefully.
The correct choice is usually driven by factors such as; how many people will be involved in the business, whether you'll need to hire others, the kind of business it is, how much income you think it's going to bring in and how you plan to grow it.
The costs and risks of each legal structure are quite different. You should think about tax implications and issues such as your time, money and the paperwork required when deciding which structure to choose. This structure will also determine whether you need to register for an ACN as well as an ABN.
ABN is short for Australian Business Number, while ACN is short for Australian Company Number. An ABN can be issued by the Australian Tax Office (ATO), on all business types including sole trader and partnership registrations, but an ACN can only be assigned by the Australian Securities and Investment Commission (ASIC), to a business that registers as a company.
There are four different types of business structure. Before choosing which is right for you, consider the pros and cons for each.
Each structure becomes more complex as you move down this list, particularly trusts. There are different tax concessions and reporting issues, which will vary by structure, by state and by industry (and they keep changing).
If you're unsure or undecided, Murray Nankivell will be able to explain which structure is the most suitable for you and help you manage the issues for each one.
Murray Nankivell can assist you all the way and once you have decided on your business structure we can do all the work to make sure your structure is set-up correctly – including applying for your ABN, ACN and Tax File Number, as applicable. You may also need to register your business for Goods and Services Tax (GST) and we can look after that too.
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