Why Structure Matters More Than Most People Realise
Tax Outcomes Vary Significantly Between Structures
A sole trader pays personal income tax rates on all business profit. A company pays a flat 25% or 30% rate. A trust can distribute income to family members in lower tax brackets. The difference in tax paid over ten years can be substantial.
Asset Protection Isn't Automatic
Operating as a sole trader means your personal assets are exposed if something goes wrong in the business. The right structure puts a legal boundary between your business risks and your personal wealth.
Changing Later Is Costly
Restructuring an established business triggers capital gains tax, stamp duty in some states, and significant legal and accounting costs. Getting it right at the start is almost always cheaper.