Choosing the Right Business Structure in Australia

Your business structure is one of the most consequential decisions you will make as a business owner. It determines how you are taxed, whether your personal assets are protected, how you can distribute income, and what your options are when you eventually sell or pass the business on.

At Y&S Accounting Brisbane, we don't just lodge forms. We first help you understand which structure is genuinely right for your situation, your goals, and your stage of business. In Australia, the four main operating structures are:

The simplest structure. You operate in your own name using your personal TFN. Low cost to set up, but offers no asset protection and limited tax-planning flexibility. All income is taxed at your marginal rate.

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Two or more people running a business together. Income flows through to each partner’s personal return. Simple to set up, but joint and several liability means each partner is responsible for the other’s actions.

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A separate legal entity registered with ASIC. Provides asset protection through the corporate veil and a flat 25% tax rate for small businesses, significantly lower than high individual marginal rates.

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The most flexible structure for family businesses and wealth planning. The trustee distributes income each year to beneficiaries in lower tax brackets, providing powerful income-splitting and asset-protection benefits.

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How the Four Structures Compare

Not sure which structure is right for you? Use this table to compare the four main options across the dimensions that matter most for your business.

CategorySole TraderPartnershipCompany (Pty Ltd)Discretionary Trust
Tax ratePersonal marginal rates up to 47%Personal marginal rates up to 47%Flat 25% (small business)Distributed at each beneficiary's marginal rate
Asset protection✕ None✕ None✓ Limited liability✓ Strong (corporate trustee)
Income splitting✕ Not possible~ Fixed split only~ Via salary/dividends✓ Fully discretionary
50% CGT discount✓ Yes (12+ months)✓ Yes (12+ months)✕ Not available✓ Yes (12+ months)
Setup costFree (ABN) to ~$43/yrSimilar to sole trader~$576 ASIC fee + professional feeTrust deed + optional corporate trustee
Succession planning✕ Dissolves on exit✕ Dissolves on exit✓ Entity continues✓ Entity continues
Best suited forTesting a business idea, low-risk freelancingSimple joint ventures with low liabilityGrowing businesses, reinvestment strategiesFamily businesses, wealth & estate planning

✓ = available  ✕ = not available  ~ = limited. Not sure which applies to you? Book a consultation - AUD $250.

Our Business Registration Services

Once the right structure is confirmed, we take care of the full setup, correctly, in the right order, aligned with your tax and asset-protection strategy from day one.

We handle end-to-end setup across every structure type:

01Business structure consultation and written recommendation
02ABN registration with the Australian Business Register
03Business name registration with ASIC
04GST registration (compulsory above $75,000 turnover)
05PAYG Withholding registration (if employing staff)
06Company registration with ASIC: ACN, constitution, and ASIC annual review setup
07Trust deed preparation and trustee setup (individual or corporate trustee)
08Trust TFN and ABN registration with the ATO

When Should You Get Structuring Advice?

Ideally, before you start trading. The most common and costly mistake Brisbane business owners make is starting with the wrong structure and then needing to restructure later. Restructuring after the fact can trigger:

1
Capital Gains Tax

Transferring business assets (goodwill, equipment, property) into a new entity is a CGT event. Depending on the asset values involved, this can result in a significant tax bill, even if no cash actually changes hands.

2
Stamp Duty

In Queensland and other states, transferring dutiable property (including certain business assets) between entities triggers stamp duty. This can add thousands to a restructure cost, particularly if real property is involved.

3
Legal and Accounting Fees

A full restructure requires new trust deeds, company constitutions, shareholder agreements, ASIC registrations, and ATO applications. Professional fees for a complex restructure commonly run to several thousand dollars.

4
Valuation Costs

To determine the market value of assets being transferred, an independent business valuation may be required. These costs compound the overall expense of restructuring, all of which could have been avoided by starting with the right structure.

Starting right is always more efficient

Frequently Asked Questions

What is the best business structure in Australia?

There is no single best structure. It depends on your income level, asset protection needs, whether you have family members to distribute income to, and your long-term goals. Sole traders are simple but offer no protection. Companies provide a flat 25% tax rate and asset protection. Trusts offer the most income flexibility. We assess your specific situation and recommend accordingly.

How much does it cost to register a business in Australia?

It depends on the structure. ABN registration is free. A business name costs ~$43/year. ASIC company registration costs $576 (2025-26). Trust deed preparation is a professional fee. Our AUD $250 consultation fee covers a full assessment and formal written proposal with exact costs, credited to your services if you engage us.

What’s the difference between a sole trader, company, and trust?

A sole trader is the simplest structure but has no asset protection and limited tax planning. A company (Pty Ltd) is a separate legal entity that pays a flat 25% corporate tax rate and protects personal assets. A discretionary trust is the most flexible for distributing income to family members in lower tax brackets and providing long-term asset protection. Each structure suits different situations, and we help you work out which one is right for you.

Do I need to register for GST when I start my business?

Only if your annual turnover is expected to reach $75,000 or more (or $150,000 for non-profits). Below that threshold, GST registration is optional. We assess your situation as part of every registration engagement and advise whether voluntary registration makes sense for your circumstances.

Can you help if I already started trading without registering properly?

Yes. We review your current setup, identify any missing registrations or compliance risks (such as unregistered ABN, missing GST registration, or trading through the wrong structure), and help you get everything in order. It’s always better to fix it early before the ATO identifies issues.

How long does business registration take in Australia?

ABN, GST, and business name registration can typically be completed within 1–2 business days. Company registration with ASIC usually takes 1–2 business days once documents are submitted. Trust deed preparation and full setup may take 3–5 business days depending on complexity. We manage the entire process so you can focus on your business.

Do you offer business registration services for international entrepreneurs?

Yes. We regularly assist international entrepreneurs, migrants, and non-residents setting up businesses in Australia. We advise on the relevant visa and residency requirements for company directors, non-resident tax obligations, and the most appropriate structure for cross-border business operations. Hablamos español - falamos português.

Book Your Business Registration Consultation

60 minutes. Tailored to your situation. Formal written service proposal included.

AUD $250 inc. GST

✓ No obligation to proceed  ·  Fee credited to implementation if you engage

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Very knowledgeable and professional. My return was filed quickly and I got the money back within weeks.

Orlando Guerra
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Cristian Campo
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Excellent service! Total transparency and professional solvency. Very timely and diligent advice I received from Sebastian.  100% Recommended!!!

Paula Guerra Sanchez
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The service I have received from Sebastian has been exceptional. With several years of experience he is always very up to date.
Of course I would do any procedure with them again because of their high level of knowledge on the subject.

Sebastian Gonzalez
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I highly recommend their accounting services as the assistance we have contracted is highly professional showing great expertise in all business and personal accounting matters. I surely believe the value for money received well overpasses the expectations of service

Eastman Velasquez
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The team at Y&S Accounting is super efficient. Always ready to help and advise in the best way.  Thanks again. 100% recommended

Alvaro Guilarte
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Highly recommended! Professional, prompt and effective service. They guided and advised us well throughout the whole process.

Juan Polanco
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Excellent service! I did the tax return and superannuation with them, and everything went smoothly. Very professional when it comes to answering and giving information. I would 100% recommend them to anyone who requires this type of service.

Valentina S
    

Very knowledgeable and professional. My return was filed quickly and I got the money back within weeks.

Orlando Guerra
    

Very knowledgeable and easy to get in contact with. Excellent customer service. Highly recommended!

Cristian Campo
    

Excellent service! Total transparency and professional solvency. Very timely and diligent advice I received from Sebastian.  100% Recommended!!!

Paula Guerra Sanchez
    

The service I have received from Sebastian has been exceptional. With several years of experience he is always very up to date.
Of course I would do any procedure with them again because of their high level of knowledge on the subject.

Sebastian Gonzalez
    

I highly recommend their accounting services as the assistance we have contracted is highly professional showing great expertise in all business and personal accounting matters. I surely believe the value for money received well overpasses the expectations of service

Eastman Velasquez
    

The team at Y&S Accounting is super efficient. Always ready to help and advise in the best way.  Thanks again. 100% recommended

Alvaro Guilarte
    

Highly recommended! Professional, prompt and effective service. They guided and advised us well throughout the whole process.

Juan Polanco
    

Excellent service! I did the tax return and superannuation with them, and everything went smoothly. Very professional when it comes to answering and giving information. I would 100% recommend them to anyone who requires this type of service.

Valentina S