Sole Trader v/s Company

Accountants Melbourne
July 9, 2016
Do you need to lodge a tax return?
July 9, 2016

BookSmart Accountants Cranbourne has ample of experience in providing business advice to all businesses in Cranbourne and beyond; no matter how big or small your business is. We are professionals working at BookSmart Accountants and assure our clients of the high quality accounting guidance to tradies, small and big businesses, freelancers, new entrepreneurs etc.

The most common question we have been asked is ‘How to Structure Businesses?’

It is very common in businesses that when you start your own business and still at establishing stage you start as a sole trader. There is nothing wrong with starting a sole trader business. It’s easy to start with when your business is at a small scale but as you grow your business it might be an option for you review the structure.

If something goes wrong in your business or with your client, as a sole trader you don’t have a lot of protection. It means that it’s not just your business on stake but your personal assets as well such as you house, your office, your car etc. However, a registered company structure provides you a shield except in certain circumstances such as insolvent trading.

Your business as a company becomes a separate entity from you, thus providing you with a corporate shield.
A company structure might also provide you with better tax planning strategies compared to sole trader option.

It does cost a little more to get a company started as compared to the sole trader. But there are pretty strong chances that it will cost you less than you will pay in case of a bad law suit. So talk to a professional Cranbourne Accountant to discuss your business in detail.

It is not essential that you have to immediately become a company, no not at all please come at talk to us and we will provide you the right advice after discussing your personal business, financials, prospects etc. Take a look at our Cranbourne Accountant services or contact us at 1300 300 106 to talk to our professionals.