Consider your business structure

Choosing the best legal structure for your business is important as each structure has different rules regarding issues such as tax, liability, succession, ownership and disposal of the business.

Think about the future

The structure you choose for your business now may not be the best structure for you in the future. Ask your solicitor if your structure can be altered as your business grows and your circumstances change.

Common business structures

The 4 most common business structures are:

• sole trader
• partnership
• company
• trust.

Learn more about the advantages and disadvantages of each business structure.

Business structure checklist

• View the Australian Taxation Office's (ATO) tax basics for small business video series.
• Check with your business adviser about the best structure for your business, and any related legal, financial and tax issues.
• Once you decide on a business structure, your solicitor will need to prepare any required legal documentation.
• Register with the Australian Securities and Investments Commission (ASIC) if you want to operate as a company.