The structure you choose affects how you pay tax, your personal liability and your ongoing paperwork. The main options are:
Sole trader
Simple and low-cost to set up. Business income is reported in your individual tax return and you are personally responsible for the business's debts.
Partnership
Two or more people carrying on a business together. The partnership lodges its own return, and profits are taxed in each partner's hands.
Company
A separate legal entity that pays tax at the company rate. Companies have more reporting obligations, and directors have legal duties.
Trust
A trustee holds and runs the business for beneficiaries. Trusts can offer flexibility in distributing income but involve more complexity and cost.
The right choice depends on your circumstances. Talk to us about business set-up.
This page contains general information only and does not take into account your personal circumstances. Speak with us for advice specific to you.
