Common Business Structures Advice for Cantor Accounting

 

Introduction

Choosing the right business structure advice is one of the most important decisions for any new or growing enterprise. The structure you select affects tax outcomes, personal liability, operational flexibility, future investment opportunities and long-term growth potential. Cantor Accounting provides clear, practical guidance to help business owners in North Sydney and across Australia choose a structure that aligns with their goals and compliance needs.

Why Business Structure Matters

Your business structure advice determines how your business is taxed, how profits are distributed, who is liable for debts, and how easily the business can expand or bring in new partners. Making a poor choice can lead to higher tax exposure, compliance issues, difficulty obtaining finance, or unnecessary personal risk.

Common Business Structures in Australia

1. Sole Trader

Best for: freelancers, tradespeople, micro-businesses.
Key features:

• Simple and inexpensive to set up.

• Owner has full control over decision-making.

• Income is taxed at individual tax rates.

• The owner is personally liable for all business debts.

Cantor Accounting guidance:
We help evaluate whether a sole trader structure remains suitable as your income grows, and advise on transitioning to a more protective structure when appropriate.

2. Partnership

Best for: two or more people carrying on business together.
Key features:

• Shared control, responsibilities and profits.

• Each partner pays tax individually on their share of income.

• Partners are personally liable for partnership debts.

Cantor Accounting guidance:
We help create partnership agreements, structure profit-sharing, prepare tax obligations and assess whether a company or trust structure may later offer better asset protection.

3. Company

Best for: growth-focused businesses, higher-risk industries, or ventures seeking investors.
Key features:

• Separate legal entity.

• Limited liability for directors and shareholders.

• Company tax rate generally lower than top personal tax rates.

• More administrative and reporting requirements.

Cantor Accounting guidance:
We advise on ASIC compliance, director obligations, shareholder agreements, PAYG/WHS considerations, and optimal tax planning under a company structure.

4. Trust (Discretionary or Unit Trust)

Best for: family businesses, investment-focused ventures, asset-heavy businesses.
Key features:

• Assets held by a trustee for beneficiaries.

• Offers strong asset-protection potential.

• Income can be distributed in tax-effective ways.

• Requires a carefully drafted trust deed and ongoing compliance.

Cantor Accounting guidance:
We design trust structures that suit income distribution needs, asset-protection goals and future succession planning.

5. Combination Structures

Many growing businesses use a mix of entities — for example, a company acting as trustee for a discretionary trust (corporate trustee).
This can offer:

• Limited liability through a company.

• Flexible income distribution through a trust.

• Strong asset-protection advantages.

Cantor Accounting guidance:
We help clients understand when layered structures make sense and manage the compliance obligations that come with them.

Key Factors When Selecting a Structure

Cantor Accounting evaluates the following when advising on structure selection:

• Tax minimisation and cash-flow efficiency.

• Personal liability and risk exposure.

• Capital-raising and investor requirements.

• Business succession and long-term planning.

• Expected income levels and industry considerations.

• Asset protection for business and personal wealth.

When to Review Your Structure

A business structure should be reviewed when:

• Revenue significantly increases.

• New partners or investors join.

• You plan to hire staff.

• You acquire major assets or intellectual property.

• You expand operations or open new business units.

• Personal or family circumstances change.

Cantor Accounting conducts periodic structure reviews to ensure your entity continues to support growth and protect assets.

How Cantor Accounting Supports You

• Initial structure assessment and comparison.

• Setup of companies, trusts and partnerships.

• Drafting of essential documents (trust deeds, shareholder agreements, resolutions).

• Ongoing compliance, BAS, payroll and annual tax filings.

• Strategic tax planning for short- and long-term goals.

• Restructuring guidance during expansion, mergers or succession planning.

Conclusion

Choosing the right business structure advice is fundamental to building a compliant, tax-efficient and resilient business. Cantor Accounting helps business owners understand their options, evaluate risks and create structures that support sustainable growth. Whether you're a start-up, family business or expanding enterprise, the right foundation can save significant time, tax and stress in the long run.