should i operate my business through a company or trust?

Hi All,

i'm currently a sole trader in QLD and wanting to know whats the most common structure people use for one man band / 1-5 employees. most people i've spoken to contractors / accountants have said having a private company with a family trust as the shareholder but also i've had 2 different accountants say trading as a trust and then doing other stuff.

i've stopped using my old accountant of 4 years and looking for a new one this year and it also happens to be the year i need to set up a structure for business so not to sure which way to go as everyone has a different opinion i was hoping there'd just be a "normal/average set up for small business" answer.

Main goal is to be Tax effective not about being chased by creditors for debts.


Cheers, Elives

 

You should also seek legal advice as there is more it it than commonwealth tax. You also need legal advice on how to structure both the company and the trust.

 

One thing to consider is how do you sell part of a business operated under a discretionary trust. With a company you can transfer shares with a trust you cannot.