Business EntitiesBusiness Structuresmall businessStarting Business

Business Entities – Business Structures

Operation Of A Small Business

If you are contemplating commencing a small business, you will need to consider the various types of business entities.

Small businesses can be operated by the utilisation of a number of different entities including:

• Sole Trader
• Partnership
• Discretionary Trust
• Unit Trust
• Company

Before you start a small business you should have a discussion with your professional accountant before the commencement of business operations and prior to signing any contracts, so that adequate planning is given to the most suitable type of entity to suit the personal circumstances of the persons who are going to operate the business.

It can be very expensive to switch from one business entity to another and there can be significant income tax and capital gains tax implications from operating businesses in one entity as compared to another.

Next week, we will comment on operating a small business as a Sole Trader.

We will then comment on partnerships, trusts and companies in the coming weeks.

If you would like to discuss business structures, please do not hesitate to contact us.


An Important Message

While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents.  Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.