A lot of business owners often assume they only need to consult a Melbourne accountant when their business is already thriving and when it’s time to pay their tax dues. However, seeking the expert advice of a Melbourne accountant is especially important when choosing the right business structure for your business.
One of the key decisions you have to make when going into business is determining what specific business structure will work best. With a number of options available, it is important to fully understand the legal requirements your business has to comply with.
In addition, the decision what specific structure will affect the taxes you will ultimately pay as well as the options available for tax planning. Your business structure will also affect your set-up costs as well as personal liability. For this reason, you will want to consult a reliable Melbourne accountant to you with the decision making process.
This is no doubt the simplest business structure to set up and run. By choosing to become a sole trader, you are essentially the business. While this specific structure is relatively inexpensive to set up, your access to the finances is typically limited to your very own resources.
In choosing to operate as a partnership business, you are basically carrying on the business with one or more individuals, which will also mean receiving joint income. The important thing to keep in mind when going into a partnership is that you and the rest of your partners will also be personally responsible for the debts accumulated by the partnership. Ask your Melbourne accountant for more details about this specific business setup.
A company is regarded as a separate legal entity from its owners, or otherwise referred to as shareholders. This means, the personal assets of the shareholders will not be touched to settle the debts of the company.
A trust is basically a business entity run by its trustees, for the benefit of the beneficiaries of the trust. One of the most common varieties for trusts is the discretionary trust. The trustee has the power to determine how the profit will be distributed among its beneficiaries.
Without a doubt, the expertise and experience of setting up businesses is something you will want to take advantage of when consulting your Melbourne accountant. So before you make any drastic and final decisions regarding your business structure, make sure to seek professional advice on the matter.