[Jason McIntosh]

Hi Shade,

I’m wondering what path you ended up choosing.

Structure is such an important aspect of any business. For others grappling with this issue, make sure you plan ahead. Capital gains tax can make it expensive to change structure once your business is profitable and has meaningful value.

This doesn’t mean you have to decide on day one – just don’t put it off until structure actually becomes an issue. Plan ahead just like you would for every other part of your business.

In my opinion, starting off as sole trader is probably fine. You’ll avoid the additional cost and compliance of a Pty Ltd company at the onset. This will also give you some time to get comfortable with the idea of running your own business. If you are feeling good about your business after a few months, and can really see yourself sticking at it, then commit to a structure.

As for asset protection, a Pty Ltd company is not an invincible shield. You can still be individually sued as a director. However, I’m not sure this would be your greatest concern over the next few months (depends on your line of business of course).

Most importantly seek professional advice - this is not an area to wing it. A lawyer is also going to be able to offer valuable advice.

Cheers

Jason