Comparison of the business structures carrying on an enterprise in Australia

Sole Trader Partnership Company Trust
Tax file number application No need to apply for TFN. Use individual TFN Yes Yes Yes
Australian business number application Yes Yes Yes Yes
Separate legal entity Yes No Yes No
Income tax payable Yes. According to the marginal tax rates of individual No. Each partners pay according to the marginal tax rates or applicable tax rates Yes. Company tax rate – 30% Yes and No. Generally each beneficiaries pay to the applicable tax rates
GST registration – Optional if annual business turnover is below certain amount. Yes Yes Yes Yes
PAYG instalments Yes No. Individual partners are liable to pay Yes No. The beneficiaries or trustees are liable to pay
PAYG withholding for yourself Not applicable Not applicable Yes. You can be an employee of the company Yes. You can be an employee of the trust
PAYG withholding for employees Yes Yes Yes Yes


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