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Hi and welcome

It will depend on who else is in the entity.

One of the issues with the company being a trading company, especially when you are starting, is that it pays 30c in the dollar tax from day one.

If you had a company as trustee of a family discretionary trust as the trading entity, it pays no tax on profit, the individual or other entity that the trust distributes the profit to pays tax at its marginal tax rate. If you distributed $80,000 profit to an individual the would pay $17,547 tax + $1200 medicare levy. A company would have paid $24,000 tax on that. The differential gets worse the higher the income and the more low income family members you can distribute income to.

There are also other issues to consider, including asset protection. An accountant is not legally able to give you advice on those sort of topics as that constitutes legal advice. Don’t get me wrong, a great Accountant is a vital part of your professional advisory team, but the information they are allowed to provide on structuring is limited.

I have attached an example of a trusts based business structure that we would advise on in particular circumstances. These utilise a multi-layered structure to remove the intellectual property from the trading entity, as well as keep as much equity as possible out of the trading entity.

There are also alternative structures to this, including significantly cheaper basic ones, it just depends on what you need. Sometimes a straight Pty is more suited.

Forum members may be able to assist if you gave more information, such as:
-individuals who need to have control of the business
-individuals who need to receive a financial benefit form the business
-are all of the above related
-do you intend bringing in non-related investors/owners into the business in the structure
-The state you want to establish the business in
-do you or will you at some stage lease premises
-do you or at some stage will you have employees
-do you or at any stage will you have creditors
-do you or will you service a large number of customers or will it be limited to a few
-what sort of services does the business provide and is it reliant on you (personal services income rules may apply)

There will be other information that you may not wish to provide on a public forum regarding assets, relationships etc. But any information you can provide will help.

Darryl