Business Structure Advice for Australian Businesses
Professional Accounting & Advisory
Service at a Glance
Personalized scope & lodgementWage earners, investment property owners, CGT, crypto & standard returns
100% online video meetings (Outlook Calendar) or in-person
Direct electronic ATO portal lodgement by Registered Tax Agent
Draft explained and authorized by you before electronic submission
- Pre-lodgement draft walkthrough & written client sign-off
- Extended ATO tax agent lodgement deadlines available
- Transparent upfront quoting & zero lodgement without approval
What does business structure advice cover?
The purpose of business structuring advice is to match the structure to the commercial situation. In Australia, common structures include sole trader, partnership, company and trust. They differ in ownership, legal status, liability, tax treatment, administration and reporting obligations.
A business structure advisor should look beyond the headline tax rate. The useful question is how the structure works with the business you actually plan to operate, who will own it, how money will move through it, what risks need to be managed and what may happen as the business grows.
Beyond Headline Tax Rates
A lower tax rate in isolation does not guarantee optimal cash flow or flexibility. True structural advice integrates asset protection, operational liability, administrative overhead, and capital raising potential.
Key factors when choosing a business structure
Selecting the ideal structure requires balancing commercial risk, operational realities, ownership dynamics, and future exit objectives.
Commercial Risk & Activities
The nature of the business activities and expected level of commercial risk.
Ownership & Control
Who will own, control and work in the business.
Profit & Loss Distribution
How profits and losses are expected to be shared or retained.
Tax Treatment of Entity & Owners
The tax treatment of the entity and the owners.
Compliance & Administration
Administration, bookkeeping, accounting and annual compliance requirements.
Team & Investor Influx
Whether employees, investors or additional business partners may be introduced.
Asset Holding & Finance
How assets and finance will be held or accessed.
Future Growth & Succession
Future growth, succession, sale or restructuring plans.
Legal & Asset Protection
Whether separate legal or asset-protection advice is required.
Sole trader, partnership, company or trust?
Each business structure offers distinct advantages and trade-offs across tax treatment, personal liability, regulatory reporting, and setup complexity.
Sole trader
A sole trader structure is generally simple to establish and operate. The individual owns and operates the business and is legally responsible for its obligations. It can suit straightforward owner-operated businesses, but the tax, liability and growth implications should still be reviewed against the individual circumstances.
Partnership
A partnership generally involves two or more people carrying on a business together and sharing income or losses. The partnership normally needs its own ABN and TFN and lodges a partnership tax return. A written partnership agreement is usually worth considering, with legal review where appropriate.
Company
A company is a separate legal entity from its shareholders. It has more formal governance, registration and ongoing compliance requirements than a sole trader or ordinary partnership. Company structure can be suitable in many situations, but the decision should consider ownership, funding, remuneration, tax and administration rather than relying on a single factor.
Trust
A trust is an arrangement where a trustee holds and manages assets for beneficiaries under the relevant trust terms. Trusts can involve additional tax, accounting and legal complexity, and the deed and trustee structure matter. Legal advice is often important when establishing or amending a trust.
Tax is important, but it is not the only factor
Business structure tax advice can help explain how income, deductions, losses, distributions and owner payments may be treated under different structures. However, the lowest apparent tax outcome is not automatically the right commercial choice. Tax consequences need to be considered alongside control, cash flow, financing, legal risk, compliance costs and future plans.
Where you are considering changing an existing structure rather than choosing one for a new business, the transaction may also have CGT, GST, duty or other consequences. Our business restructuring service focuses on the tax and accounting considerations of implementing an actual restructure.
When should you review your structure?
A structure that suited a startup may become inefficient as turnover scales, staff expand, or personal liability exposures multiply.
Before starting a new business or buying an existing business.
Before bringing in a business partner, investor or new owner.
When a sole trader business is growing in size or risk.
Before moving valuable assets between entities.
When profits, staffing or financing needs change materially.
Before a sale, succession or ownership transition.
When the administration burden no longer matches the business needs.
What Financially Up can help with
Our accountant business structure advice can include reviewing the current or proposed activities, comparing common entity options, explaining tax and accounting implications, identifying likely registration and compliance obligations, and coordinating the next accounting steps once a structure is selected.
Advisory Scope:
- Reviewing the current or proposed business activities and risk profile
- Comparing common entity options (sole trader, partnership, company, trust)
- Explaining tax and accounting implications across profit, drawings, and distributions
- Identifying likely registration, regulatory, and annual compliance obligations
- Coordinating the next accounting, ABN, and setup steps once a structure is selected
Information that helps us assess the options
Useful information helps us model tax liabilities, administrative overhead, and commercial fit across each potential entity. Existing entity documents and registrations are also relevant when reviewing a current structure.
Assessment Information Checklist:
- Proposed business activities and industry sector
- Current or projected annual turnover and profit margins
- Owners, directors, partners, beneficiaries, and related parties
- Existing business assets, debts, and equipment
- Funding arrangements and borrowing requirements
- Employee hiring projections and contractor usage
- Plans to retain working capital versus distributing profits
- Likely future investors, partners, or equity plans
- Medium-term growth targets and exit/succession objectives
Why choose Financially Up?
Financially Up Pty Ltd is a registered tax agent with 10+ years of experience. Our professional team includes CPA and IPA members and supports clients across Australia. Appointments are available online and in person.
We aim to make structure decisions understandable. That means clearly explaining what each option changes, what remains uncertain, which tax or accounting issues need closer review and where specialist legal advice may be needed.
Registered Tax Agent
Financially Up Pty Ltd provides over 10 years of structural tax and entity planning experience for Australian businesses.
CPA & IPA Qualified Team
Our senior accountants are CPA Australia and IPA qualified practitioners who understand complex entity relationships.
Australia-Wide Accessibility
Online remote consultations across all states alongside face-to-face meetings at our North Sydney office.
Clarity Over Jargon
We clearly explain what each option changes, what remains uncertain, and where specialist legal advice may be needed.
Frequently Asked Questions About Business Structure Advice
Find fast answers to common questions about our individual tax lodgements, deductions, and CPA services.
Identifying eligible deductions is crucial for minimizing your taxable income and maximizing your tax savings. Our team at Financially Upwill diligently explore all potential deductions applicable to your situation. From commonly claimed deductions to often overlooked ones, we leave no stone unturned in helping you claim every deduction you're entitled to.