Which business structure suits you?
Answer six questions to see whether a sole trader, partnership, company or trust is likely to suit your business, and why.
The four structures at a glance
| Structure | Tax | Liability | Set-up and running |
|---|---|---|---|
| Sole trader | Profit taxed at your personal rates | You are personally liable for debts | Simplest and cheapest: an ABN and your own tax return |
| Partnership | Each partner pays tax on their share at personal rates | Partners are jointly liable | A partnership agreement and a partnership tax return |
| Company | 25% for most small businesses (base rate entities) | Limited, though directors have duties and can be personally liable in some cases | ASIC registration, annual review fee and a company tax return |
| Trust | Income distributed to beneficiaries, taxed at their rates | Limited if a company is the trustee | A trust deed, trustee and yearly distribution resolutions |
This tool gives a starting point, not a recommendation. The right choice also depends on your personal assets, family situation, plans to sell, and state taxes. Many businesses start as a sole trader and restructure later, so talk to us before you register if you're unsure.
These results are estimates for general information only. They don't take your personal circumstances into account and aren't tax or financial advice. Speak with a registered tax agent before acting.