Sunrise Consulting | Sydney +61 2 9261 8001 | Darwin: +61 8 7903 0222

Sole Trader, Company, Partnership & Trust

Sole Trader

A sole trader is the simplest form of business structure and is relatively easy and inexpensive to setup. As a sole trader, you are legally responsible for all aspects of your business. including any debts and losses and day-to-day business decisions.

Advantages

  • Simple to set up and operate
  • You retain complete control of your assets and business decisions
  • Fewer reporting requirements
  • Any losses incurred by your business activities may be offset against other income, such as your investment income or wages (subject to certain conditions)
  • Allows you to use your individual tax File number (TFN) to lodge tax returns
  • You are not considered an employee of your own business and therefore don’t pay payroll tax, superannuation or workers’ compensation on income you draw from the business
  • Relatively easy to change business structure if your business grows or if you wish to winding up

Tax requirements

Sole traders are taxed as individuals and pay income tax at personal rates.
For more information regarding tax obligations for sole traders please contact our expert tax consultants

Services

Setup and Registration
Bookkeeping
Payroll Management
Business Activity Statement (BAS)
Tax Planning
Annual Financial statements
Tax Return
Budgeting and forecasting
Liaison with the Tax Office

Company

A company business structure is a separate legal entity, unlike a sole trader or a partnership structure. This means the company has the same rights as a natural person and can incur debt, sue and be sued.
You may consider a company structure when starting or growing your business. Our experienced team can assist in setting up the most appropriate business structure, ensuring regular compliance with ASIC legislation and provide the most effective tax planning for your business.

Advantages

Limited liability for shareholders
Well understood and accepted structure
Able to raise significant capital
Can carry forward losses indefinitely to offset against future profits
Profits can be reinvested in the company or paid to the shareholders as dividends

Tax requirements

A company pays income tax on its income (or profits) at the company tax rate. There is no tax-free threshold for companies and tax is paid on every dollar earned.
For more information regarding your tax obligations as a company please contact our expert tax consultants

Services

  • Setup of company
  • Registration of Business name
  • Registration of Tax File Number (TFN) and Australian Business Number (ABN)
  • Bookkeeping
  • Payroll Management
  • Business Activity Statement (BAS) and Instalment Activity Statements (IAS)
  • Tax Planning
  • Annual financial statements
  • Tax Return
  • Budgeting and forecasting
  • Maintaining records of statutory minutes and Annual General Meeting (AGM) minutes
  • Maintenance of Corporate Register
  • Acting as an ASIC registered agent
  • Liaison with the Tax Office

Trust

A trust is a structure where a trustee carries out the business on behalf of the trust’s members (or beneficiaries). Trusts can be created for several reasons, to provide an on-going support for a beneficiary under your Will and to provide an elective tax planning. A trustee may be an individual or a company.
A trust is set up through a trust deed and there are two main types: discretionary or unit trusts.
Our experienced team can advise you on type of trust structure that fits your requirement.

Advantages

Reduced liability especially if corporate trustee
Assets are protected
Flexibility of asset and income distribution

Tax requirements

A trustee must apply for a tax file number (TFN) and lodge an annual trust return. The trust is notable to pay tax. Instead tax is assessed to the trustee or the beneficiaries that are entitled to receive the trust net income. For more information regarding your tax obligations as a company please contact our expert tax consultants.

Services

Setup and registration
Discretionary Family Trust
Unit Trust
Stamping of Trust Deed
Bookkeeping
Payroll Management
Business Activity Statement (BAS) and Instalment Activity Statements (IAS)
Tax Planning
Annual financial statements
Tax Return
Budgeting and forecasting
Maintaining records of statutory minutes and Annual General Meeting (AGM) minutes
Maintenance of Corporate Register
Acting as an ASIC registered agent
Liaison with the Tax Office

Partnership

A partnership is a business structure made up of 2 or more people who distribute income or losses between themselves. Our experienced team can help setup your business structure and advice you on the most efficient way to run your business.

Advantages

Simple to set up
Minimal reporting requirements
Shared control and management with other partners
A partner’s share of the business’s tax losses may be offset against other personal income, subject to certain conditions
Relatively easy to dissolve the partnership
Partners are not employees. Superannuation contributions and workers’ compensation insurance are not compulsory for partners
Easier to obtain finance as you are not relying on one person’s income or assets

Tax requirements

A partnership doesn’t pay tax on its income. Instead, each partner pays tax on the share of net partnership income each receives. For more information regarding tax obligations for partnerships please contact our expert tax consultants.

Services

Registration of business name
Tax File Number (TFN)
Australian Business Number (ABN)
Bookkeeping
Payroll Management
Business Activity Statement (BAS) and Instalment Activity Statements (IAS)
Tax Planning
Annual financial statements
Tax Return
FBT Tax return
Budgeting and forecasting
Liaison with the Tax Office