Business Structure for Contracting

I've spent the last few years IT contracting in the UK, and the best way to go there is to structure yourself as a limited liability company. This gives you a degree of protection, and there are also tax benefits if you dodge the IR35 test for a disguised employee.

I'm now in Australia, and looking to set myself up to provide IT services. The three options I'm considering are:

• Sole trader.
• Private limited liability company.
• Registering my UK company with ASIC, and operating a local branch.

I'm tempted to go the sole trader root for cost and simplicity reasons. I was wondering if anyone has any inputs on whether this is a bad idea, or if there are benefits going for a limited liability company.

Thanks.

 

Consider the alienation of personal services income aspects too.

 

Thanks Terry.

The alienation of personal services income rules seem similar to IR35. I'm not sure if I'd get around them as a typical IT contractor, as I'd be expected to be on site.

I might set myself up as a sole trader in the short term, and then upgrade to a limited company in three to six months. Still thinking...