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Choosing the right business structure: Are you missing out? Posted on October 9, 2018
The right structure depends on your personal and business circumstances, but more often than not, many businesses fail to realise all the benefits associated with different structures – often resulting in them paying too much tax.
There are 4 main types of structures or methods in which to conduct business:
1. Sole Trader
Each one has advantages and disadvantages that need to be assessed in conjunction with personal circumstances, business performance and the overall business plan.
Sometimes, a business will need a combination of structures to either protect their assets or reflect income fairly and equally among the shareholders.
But like life, things in business change regularly and sometimes what was the right structure last year, will not be the right structure this year.
In fact, every business should review their structure at least every 6 months to make sure that they are maximising the full benefits that each brings.
This is because, not only are the Tax Laws ever changing, but so too are your personal circumstances.
1. Do you have “bad debt” that could be turned into “good debt”?
2. Do you have cash flow issues in your business that could be improved?
3. Do you wonder if you are getting every possible tax deduction and tax strategy that is available to you?
4. Do you think that your business structure could be improved to minimise tax?
If you answered “yes” or “not sure” to any of these, maybe it’s time for a closer look.
For a complimentary review of your structure and if you are operating tax efficiently click here and we’ll arrange for one of our tax experts to “take a look under the hood” for you.