Tax Effective Business Structure


There are four main business structures used by small businesses.

https://sites.google.com/site/jhbusinessservices/home/tax-effective-structure/user84.png Sole Trader
https://sites.google.com/site/jhbusinessservices/home/tax-effective-structure/peace.png Partnership
https://sites.google.com/site/jhbusinessservices/home/tax-effective-structure/office42.png Company
https://sites.google.com/site/jhbusinessservices/home/tax-effective-structure/banking2.png Trust 

Which one of the four main business structures is most tax effective?

It depends on each individual circumstance.

Besides choosing most tax effective structure you also need to examine other features of the business structure to meets your requirement such as: -

  • Asset protection
  • Income allocation/split
  • Business agreements
  • Meeting your legal requirements

Typically, costs and complexity increase as you move from a sole trader to a partnership to a company to a trust.

When starting a business, you may start as a sole trader and you can change structure as your business grows or changes.

But if you set up a right business structure from start, you would not need to go through hassle of changing business name, getting a new ABN, changing banking arrangements and etc later on.

The Comparison table shows the main features of business structures. Click the comparison hyperlink to see the differences.

Also click Advantages and Disadvantages for each business structures.


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JH Business Services & Taxation
Accounting | Business Advisory | Tax Services
Specialist in small to medium business 
& personal tax services


Norwest Office


 Suite 205
29-31 Lexington Drive
Bella Vista
NSW 2153