Save Tax, Protect Your Assets and Set Yourself up for Success with Our Business Structure Accounting Services
Growing your own business comes with many exciting decisions — from naming your business to designing your first business cards. But in your excitement, don’t forget about the most important building blocks!
Taking the time to get your business structure right is paramount for both asset protection and tax minimisation and should be thought about from the get-go.
Think of it like building the foundation for a house. If you don’t get it right from the start, sure, you can still build on top of it but it won’t be stable enough to support your vision. Over time the cracks are going to show and the wrong foundation will affect your tax every year and put your business at risk. You can modify the foundation, but as you know it is a lot more expensive and hard to change your ground than setting up right at first.
Our business structure accounting services are like a property inspector who ensures everything’s up to code and aligns with your plans. You will have a business that is set up in the most beneficial way possible!
Your business needs sound structuring advice if you’re just starting out, but even as an established business restructuring will be required when your business size, purpose or family situation change.
We listen to your ambitions and set you up with a structure that will help you achieve your goals – now and in the long term.
Why is Obtaining Effective Business Structuring Advice so Important?
At its core, business structure planning is about maximising these four key benefits the best you can when determining what entity type or entity combination is right for you.
Tax minimisation
Get your business structure right, and you won’t pay a dollar more tax than necessary! The business structure you choose has the ability to impact the amount of money you pay to the taxman each year and the amount that goes in your own pocket.
Asset protection
Don’t put your family home on the line for your new business venture! Setting up the right structure is like a shield that protects your personal wealth and assets from your business risks. The stronger the shield is, the more protection you and your family have.
Limited liability
Give yourself more of a safety net! Setting up a corporate veil can give you limited liability. This means that you are able to better protect yourself from the unnecessary burden of company debts that will follow you.
Succession plan
Plan to pass and exit your business with minimum tax. Everyone needs to retire eventually, and your current structure should support how you want to exit your business. In an exit, CGT, Stamp duty, and GST come into play, and it is too late to think about it when you are ready to sell!
If even one of these elements is not properly thought through, it’s highly likely that:
- You’re paying more to the ATO than necessary
- Your overall business and personal wealth are at risk from creditors
- There will be limited options for succession, or you will have massive tax debt when you sell your business
What Are the Options When it Comes to Business Structuring?
The business structure you choose plays a key role in determining how much tax you pay, what licenses you require and how much control you have over your business.
Therefore, it’s important to have an understanding of the key differences between each option before you decide what business structure is best for you!
Sole Trader
The simplest of business structures is a sole trader. A sole trader operates their business under their own name and is personally liable for all aspects of their business.
Partnership
A partnership structure is made up of two or more people/entities, who are all committed to the same business venture. All income and losses are distributed between the partners and each partner is jointly and severally liable for all debts incurred in the name of the partnership.
Company
A company is an entity that has a separate legal existence from its owners. The owners of the company are known as shareholders or members.
Trust
A trust is an entity set up with trustee(s), appointor(s) and beneficiaries. The trustee is under obligation to hold property or assets for the benefit of others, known as the beneficiaries.
When it comes to structuring, there is no one size fits all. Each business structure has its advantages, disadvantages and responsibilities which need to be considered before deciding what business structure is right for you.
It’s advisable to have a chat with one of our expert accountants who can help assess what structure is best for your unique situation and set you up for the future!
FAQs
Can Spark Accountants help restructure an existing business?
Yes, Spark Accountants can thoroughly review your current business structure and offer expert guidance on restructuring to meet your evolving needs. Whether it’s for tax efficiency, asset protection, or succession planning, we use our extensive experience and qualifications to ensure your new structure aligns with your business growth. We make the restructuring process smooth and compliant with all legal requirements, helping you stay agile in a competitive market.
Book a consultation today to explore how we can restructure your business for better efficiency.
Does the business structure affect how I pay myself?
Yes, your business structure determines how you can draw income, whether through salary, dividends, or drawings. At Spark Accountants, we help you set up the income distribution based on your structure, ensuring it is done in the most tax-effective way. Our certified tax experts can walk you through the legal and tax implications, so you can optimise how you pay yourself while staying compliant.
Contact us for advice on structuring your income in the most tax-efficient way.
How can Spark Accountants assist in setting up a new business structure?
Spark Accountants provides comprehensive business structuring services, guiding you from the initial consultation through to full implementation. We take into account your business goals, tax needs, and asset protection requirements, addressing the right structure for your business. Our certified accountants and advisors handle all registrations and ensure compliance with tax and legal regulations, making the process straightforward and hassle-free.
Contact us to get started with a business structure that sets you up for long-term success.
What business structures do Spark Accountants specialise in?
Spark Accountants specialises in structuring businesses as sole traders, partnerships, companies, and trusts. Our qualified team will assess your unique business needs and guide you in selecting the structure that best suits your tax situation, business objectives, and personal protection. As Xero-certified and highly skilled in complex structuring, we offer personalised advice that aligns with your specific circumstances.
Reach out to discuss which business structure is right for you.
What is the most tax-efficient business structure?
The most tax-efficient structure depends on factors such as your business size, industry, and financial goals. Spark Accountants will evaluate your business to identify the structure that offers the best tax advantages. As certified tax professionals, we ensure that your business minimises its tax burden while staying compliant with ATO regulations, allowing you to keep more of your profits.
Get in touch today for a tax efficiency assessment of your business structure.
