{"id":9581,"date":"2024-10-09T18:19:19","date_gmt":"2024-10-09T07:19:19","guid":{"rendered":"https:\/\/ph.trdemo.com.au\/rogersonkenny\/?p=9581"},"modified":"2024-12-12T21:04:08","modified_gmt":"2024-12-12T10:04:08","slug":"sole-trader-vs-company","status":"publish","type":"post","link":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/sole-trader-vs-company\/","title":{"rendered":"Sole Trader vs Company"},"content":{"rendered":"[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text text_direction=&#8221;default&#8221;]\n<h1><span class=\"TextRun SCXW148807323 BCX8\" lang=\"EN-AU\" xml:lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW148807323 BCX8\" data-ccp-parastyle=\"heading 3\">Sole<\/span><span class=\"NormalTextRun SCXW148807323 BCX8\" data-ccp-parastyle=\"heading 3\"> Trader vs Company \u2013 What You Need to Know<\/span><\/span><span class=\"EOP SCXW148807323 BCX8\" data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:281,&quot;335559739&quot;:281}\">\u00a0<\/span><\/h1>\n<p>&nbsp;<\/p>\n<p><span class=\"TextRun SCXW51956870 BCX8\" lang=\"EN-AU\" xml:lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW51956870 BCX8\">When starting a business in Australia, one of the first decisions <\/span><span class=\"NormalTextRun SCXW51956870 BCX8\">you&#8217;ll<\/span><span class=\"NormalTextRun SCXW51956870 BCX8\"> face is choosing the right business structure. Two of the most common options are <\/span><span class=\"NormalTextRun SCXW51956870 BCX8\">operating<\/span><span class=\"NormalTextRun SCXW51956870 BCX8\"> as a <\/span><\/span><strong><span class=\"TextRun SCXW51956870 BCX8\" lang=\"EN-AU\" xml:lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW51956870 BCX8\">sole trader<\/span><\/span><\/strong><span class=\"TextRun SCXW51956870 BCX8\" lang=\"EN-AU\" xml:lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW51956870 BCX8\"> or setting up a <\/span><\/span><strong><span class=\"TextRun SCXW51956870 BCX8\" lang=\"EN-AU\" xml:lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW51956870 BCX8\">company<\/span><\/span><\/strong><span class=\"TextRun SCXW51956870 BCX8\" lang=\"EN-AU\" xml:lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW51956870 BCX8\">. Each has its own set of advantages and disadvantages, and the choice you make can significantly <\/span><span class=\"NormalTextRun SCXW51956870 BCX8\">impact<\/span><span class=\"NormalTextRun SCXW51956870 BCX8\"> how you run your business, your tax obligations, and your personal liability. In this <\/span><span class=\"NormalTextRun SCXW51956870 BCX8\">article <\/span><span class=\"NormalTextRun SCXW51956870 BCX8\">we\u2019ll<\/span><span class=\"NormalTextRun SCXW51956870 BCX8\"> break down the key differences between these two structures to help you make an informed decision on <\/span><\/span><strong><span class=\"TextRun SCXW51956870 BCX8\" lang=\"EN-AU\" xml:lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW51956870 BCX8\">Sole Trader vs Company \u2013 what you need to know<\/span><\/span><span class=\"TextRun SCXW51956870 BCX8\" lang=\"EN-AU\" xml:lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW51956870 BCX8\">.<\/span><\/span><span class=\"EOP SCXW51956870 BCX8\" data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/strong>[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][divider line_type=&#8221;Full Width Line&#8221; line_thickness=&#8221;5&#8243; divider_color=&#8221;extra-color-3&#8243; custom_height=&#8221;10px&#8221;][divider line_type=&#8221;No Line&#8221;][vc_column_text text_direction=&#8221;default&#8221;]\n<h2><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed GrammarErrorHighlight SCXW152019883 BCX8\" data-ccp-parastyle=\"heading 4\">What<\/span><span class=\"NormalTextRun SCXW152019883 BCX8\" data-ccp-parastyle=\"heading 4\"> Is a Sole Trader?<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span class=\"TextRun SCXW16758963 BCX8\" lang=\"EN-AU\" xml:lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW16758963 BCX8\">A <\/span><\/span><strong><span class=\"TextRun SCXW16758963 BCX8\" lang=\"EN-AU\" xml:lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW16758963 BCX8\">sole trader<\/span><\/span><\/strong><span class=\"TextRun SCXW16758963 BCX8\" lang=\"EN-AU\" xml:lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW16758963 BCX8\"> is the simplest and most straightforward business structure. <\/span><span class=\"NormalTextRun SCXW16758963 BCX8\">As a<\/span><span class=\"NormalTextRun SCXW16758963 BCX8\"> sole trader, you are the sole owner and operator of your business, meaning you have full control over all decisions<\/span><span class=\"NormalTextRun SCXW16758963 BCX8\"> and all financial implications are with you personally.<\/span><span class=\"NormalTextRun SCXW16758963 BCX8\"> A sole trader has no legal status separate from the operator.<\/span> <span class=\"NormalTextRun SCXW16758963 BCX8\">This structure is popular among freelancers, small business owners, and individuals offering services on their own.<\/span><span class=\"NormalTextRun SCXW16758963 BCX8\">\u00a0<\/span><\/span><span class=\"EOP SCXW16758963 BCX8\" data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span>[\/vc_column_text][image_with_animation image_url=&#8221;9203&#8243; image_size=&#8221;full&#8221; animation_type=&#8221;entrance&#8221; animation=&#8221;None&#8221; animation_movement_type=&#8221;transform_y&#8221; hover_animation=&#8221;none&#8221; alignment=&#8221;&#8221; border_radius=&#8221;none&#8221; box_shadow=&#8221;none&#8221; image_loading=&#8221;default&#8221; max_width=&#8221;100%&#8221; max_width_mobile=&#8221;default&#8221;][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][divider line_type=&#8221;Full Width Line&#8221; line_thickness=&#8221;5&#8243; divider_color=&#8221;extra-color-3&#8243; custom_height=&#8221;10px&#8221;][divider line_type=&#8221;No Line&#8221;][vc_column_text text_direction=&#8221;default&#8221;]\n<h2><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed GrammarErrorHighlight SCXW226058086 BCX8\">Advantages<\/span><span class=\"NormalTextRun SCXW226058086 BCX8\"> of Being a Sole Trader:<\/span><\/h2>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Ease of Setup:<\/span><\/b><span data-contrast=\"auto\"> Setting up as a <\/span><b><span data-contrast=\"auto\">sole trader<\/span><\/b><span data-contrast=\"auto\"> is quick and relatively inexpensive and you can usually do it all yourself. You don\u2019t need to register a company, just apply for an Australian Business Number (ABN) and register for GST if your turnover exceeds $75,000.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Complete Control:<\/span><\/b><span data-contrast=\"auto\"> As the sole owner, you have complete control over your business decisions, allowing you to manage your operations as you see fit.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Simple Taxation:<\/span><\/b><span data-contrast=\"auto\"> The income you earn as a <\/span><b><span data-contrast=\"auto\">sole trader<\/span><\/b><span data-contrast=\"auto\"> is considered your personal income, so you only need to lodge a personal tax return, simplifying the tax process.\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Offset losses:<\/span><\/b><span data-contrast=\"auto\"> trading losses can be offset against other income in the sole traders personal tax return<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">A Sole Trader:<\/span><\/b><span data-contrast=\"auto\"> is the most cost-effective business structure to establish\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][divider line_type=&#8221;Full Width Line&#8221; line_thickness=&#8221;5&#8243; divider_color=&#8221;extra-color-3&#8243; custom_height=&#8221;10px&#8221;][divider line_type=&#8221;No Line&#8221;][vc_column_text text_direction=&#8221;default&#8221;]\n<h2><span class=\"NormalTextRun SCXW226058086 BCX8\"><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW4964009 BCX8\">Disadvantages<\/span> of Being a Sole Trader:<\/span><\/h2>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"6\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Unlimited Liability:<\/span><\/b><span data-contrast=\"auto\"> One of the biggest disadvantages of being a <\/span><b><span data-contrast=\"auto\">sole trader<\/span><\/b><span data-contrast=\"auto\"> is that you are personally liable for all the business\u2019s debts and obligations and for any risk. If your business runs into financial trouble, your personal assets, such as your home, could be at risk. A sole trader structure is often not a good idea if you have risk in the business or employees.\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"7\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Limited Growth Potential:<\/span><\/b><span data-contrast=\"auto\"> Raising capital or going into business with a partner can be challenging as a <\/span><b><span data-contrast=\"auto\">sole trader<\/span><\/b><span data-contrast=\"auto\">, and there is a limit to how much you can expand without taking on additional risk and the business structure doesn\u2019t allow for partners to come in.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"8\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Tax Efficiency:<\/span><\/b><span data-contrast=\"auto\"> As your income increases, operating as a <\/span><b><span data-contrast=\"auto\">sole trader<\/span><\/b><span data-contrast=\"auto\"> may become less tax-efficient, as you are taxed at personal income tax rates, which depending on your income levels, could be higher than the corporate tax rate.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"9\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Limited Succession:<\/span><\/b><span data-contrast=\"auto\"> It is difficult to succeed a business that is operated by a sole trader. A sole trader is possible the least beneficial for succession planning.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"10\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Funding Difficulty: <\/span><\/b><span data-contrast=\"auto\">Banks can struggle to lend to a sole trader business<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"11\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Perception:<\/span><\/b><span data-contrast=\"auto\"> As you grow and start having larger customers, operating as a sole trader doesn&#8217;t look professional or give the perception of scale\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/2&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][divider line_type=&#8221;Full Width Line&#8221; line_thickness=&#8221;5&#8243; divider_color=&#8221;extra-color-3&#8243; custom_height=&#8221;10px&#8221;][divider line_type=&#8221;No Line&#8221;][vc_column_text text_direction=&#8221;default&#8221;]\n<h2><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed GrammarErrorHighlight SCXW34950616 BCX8\" data-ccp-parastyle=\"heading 4\">What<\/span><span class=\"NormalTextRun SCXW34950616 BCX8\" data-ccp-parastyle=\"heading 4\"> Is a Company?<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span class=\"TextRun SCXW156030648 BCX8\" lang=\"EN-AU\" xml:lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW156030648 BCX8\">A <\/span><\/span><strong><span class=\"TextRun SCXW156030648 BCX8\" lang=\"EN-AU\" xml:lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW156030648 BCX8\">company<\/span><\/span><\/strong><span class=\"TextRun SCXW156030648 BCX8\" lang=\"EN-AU\" xml:lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW156030648 BCX8\"> is a separate legal entity from its owners, known as shareholders.<\/span><span class=\"NormalTextRun SCXW156030648 BCX8\"> A company acts much like a natural person. It can sue. It can be sued, and it pays tax. <\/span><\/span><\/p>\n<p><span class=\"TextRun SCXW156030648 BCX8\" lang=\"EN-AU\" xml:lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW156030648 BCX8\">A<\/span><span class=\"NormalTextRun SCXW156030648 BCX8\"> company structure is an effective and transparent structure where arm\u2019s length parties can go into business togethe<\/span><span class=\"NormalTextRun SCXW156030648 BCX8\">r<\/span><span class=\"NormalTextRun SCXW156030648 BCX8\">.<\/span> <span class=\"NormalTextRun SCXW156030648 BCX8\">E<\/span><span class=\"NormalTextRun SCXW156030648 BCX8\">ach party can own a fixed interest (via shares) in the company, with the relationship <\/span><span class=\"NormalTextRun SCXW156030648 BCX8\">governed<\/span><span class=\"NormalTextRun SCXW156030648 BCX8\"> by the Corporations Act 2001 and the company const<\/span><span class=\"NormalTextRun SCXW156030648 BCX8\">itution. <\/span><\/span><\/p>\n<p><span class=\"TextRun SCXW156030648 BCX8\" lang=\"EN-AU\" xml:lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW156030648 BCX8\">A company <\/span><span class=\"NormalTextRun SCXW156030648 BCX8\">structure<\/span><span class=\"NormalTextRun SCXW156030648 BCX8\"> is <\/span><span class=\"NormalTextRun SCXW156030648 BCX8\">generally well<\/span><span class=\"NormalTextRun SCXW156030648 BCX8\"> understood, however <\/span><span class=\"NormalTextRun SCXW156030648 BCX8\">is more complex than a sole trader but offers distinct advantages, particularly for businesses looking to grow or protect personal assets<\/span><span class=\"NormalTextRun SCXW156030648 BCX8\"> of its owners<\/span><span class=\"NormalTextRun SCXW156030648 BCX8\">.<\/span><\/span><span class=\"EOP SCXW156030648 BCX8\" data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span>[\/vc_column_text][\/vc_column][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/2&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][image_with_animation image_url=&#8221;7894&#8243; image_size=&#8221;medium_featured&#8221; animation_type=&#8221;entrance&#8221; animation=&#8221;None&#8221; animation_movement_type=&#8221;transform_y&#8221; hover_animation=&#8221;none&#8221; alignment=&#8221;center&#8221; border_radius=&#8221;none&#8221; box_shadow=&#8221;none&#8221; image_loading=&#8221;default&#8221; max_width=&#8221;100%&#8221; max_width_mobile=&#8221;default&#8221;][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][divider line_type=&#8221;Full Width Line&#8221; line_thickness=&#8221;5&#8243; divider_color=&#8221;extra-color-3&#8243; custom_height=&#8221;10px&#8221;][divider line_type=&#8221;No Line&#8221;][vc_column_text text_direction=&#8221;default&#8221;]\n<h2><span class=\"TextRun SCXW174507821 BCX8\" lang=\"EN-AU\" xml:lang=\"EN-AU\" data-contrast=\"auto\"><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW174507821 BCX8\">Advantages<\/span><span class=\"NormalTextRun SCXW174507821 BCX8\"> of Operating as a Company:<\/span><\/span><span class=\"EOP SCXW174507821 BCX8\" data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/h2>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"12\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Limited Liability:<\/span><\/b><span data-contrast=\"auto\"> One of the primary benefits of a <\/span><b><span data-contrast=\"auto\">company<\/span><\/b><span data-contrast=\"auto\"> structure is limited liability. Shareholders\u2019 personal assets are generally protected, as they are only liable for the amount they have invested in the company.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"13\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Tax Benefits:<\/span><\/b><span data-contrast=\"auto\"> Companies are taxed at a flat corporate rate, which is currently much lower than the highest personal tax rates in Australia. This can result in significant tax savings as the business grows.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"14\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Access to Capital:<\/span><\/b><span data-contrast=\"auto\"> Companies can raise capital more easily by issuing shares, which can be a key advantage if you plan to expand your business.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"15\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Unrelated Business Owners:<\/span><\/b><span data-contrast=\"auto\"> a company allows for unrelated business owners to do business together. This is possible as shareholders have fixed entitlements to capital and income and all companies have the protection of <\/span><i><span data-contrast=\"auto\">The Corporations Act 2001<\/span><\/i><span data-contrast=\"auto\"> which regulates all matters to do with a company.\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"16\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Franking Credits:<\/span><\/b><span data-contrast=\"auto\"> When a company pays income tax to the ATO, this gives rise to a franking credit for the company, which is held until such a time as the company pays dividends. These dividends with a franking credit attached (a credit to the value of tax already paid by the company on profits) is passed onto shareholders as a tax credit to be claimed against their taxable income. This prevents double taxation on company profits.\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"17\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Ability to do business: <\/span><\/b><span data-contrast=\"auto\">for contractors where the entity they contract with require them to operate through a company. Some Government agencies and other businesses may only deal with a company.\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"18\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Going Public:<\/span><\/b><span data-contrast=\"auto\"> where the entity may be listed in the future as a public company, establishing the business in a company at the start will make this easier.\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"19\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Tax Concessions:<\/span><\/b><span data-contrast=\"auto\"> the R&amp;D tax concession can only be accessed via a company\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][divider line_type=&#8221;Full Width Line&#8221; line_thickness=&#8221;5&#8243; divider_color=&#8221;extra-color-3&#8243; custom_height=&#8221;10px&#8221;][divider line_type=&#8221;No Line&#8221;][vc_column_text text_direction=&#8221;default&#8221;]\n<h2><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed GrammarErrorHighlight SCXW96699338 BCX8\">Disadvantages<\/span><span class=\"NormalTextRun SCXW96699338 BCX8\"> of Operating as a Company:<\/span><\/h2>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"20\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">More Complex Setup and Administration:<\/span><\/b><span data-contrast=\"auto\"> Setting up a <\/span><b><span data-contrast=\"auto\">company<\/span><\/b><span data-contrast=\"auto\"> involves more paperwork, including registration with the Australian Securities and Investments Commission (ASIC) and ongoing compliance requirements, such as filing annual financial statements.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"21\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Less Flexibility:<\/span><\/b><span data-contrast=\"auto\"> Running a <\/span><b><span data-contrast=\"auto\">company<\/span><\/b><span data-contrast=\"auto\"> involves more formalities and may require additional governance, such as appointing directors and holding regular meetings.\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"22\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">The money is not yours:<\/span><\/b><span data-contrast=\"auto\"> Money or assets held within a company are not yours. To access such funds or assets, you need to usually pay a dividend.\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"23\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Personal Services Income:<\/span><\/b><span data-contrast=\"auto\"> If your income is generated from your personal efforts or skills and you operate in a company, you may still be required to remit this income in your personal tax return.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"24\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">50% CGT Discount:<\/span><\/b><span data-contrast=\"auto\"> a Company cannot access the 50% CGT discount if it is selling an asset held for more than 12 months (like an individual or trust can). However, with company rates at 25% (base rate entity), there is not a lot of difference between top marginal tax rates and receiving the 50% CGT discount and not receiving it with a company base rate of 25%.\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"25\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Losses:<\/span><\/b><span data-contrast=\"auto\"> Losses are trapped in the company, unless the company consolidates within a corporate group<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"26\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Directors Liability:<\/span><\/b><span data-contrast=\"auto\"> Directors can be personally liable for some debts, such as superannuation, GST and PAYG W.\u00a0<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][divider line_type=&#8221;Full Width Line&#8221; line_thickness=&#8221;5&#8243; divider_color=&#8221;extra-color-3&#8243; custom_height=&#8221;10px&#8221;][vc_column_text text_direction=&#8221;default&#8221;]\n<h1><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW159489224 BCX8\" data-ccp-parastyle=\"heading 4\">Sole<\/span><span class=\"NormalTextRun SCXW159489224 BCX8\" data-ccp-parastyle=\"heading 4\"> Trader vs Company: Which Is Right for You?<\/span><\/h1>\n<p>&nbsp;<\/p>\n<p><span data-contrast=\"auto\">When deciding between a <\/span><b><span data-contrast=\"auto\">sole trader vs company<\/span><\/b><span data-contrast=\"auto\">, the right choice depends on your business goals, the level of risk you&#8217;re willing to take, and your long-term plans. You really need to also consider the longer term when choosing a business structure \u2013 not just the now and what is the cheapest.\u00a0<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"27\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Start Small:<\/span><\/b><span data-contrast=\"auto\"> If you&#8217;re just starting out, have minimal financial risk, and want to keep things simple, operating as a <\/span><b><span data-contrast=\"auto\">sole trader<\/span><\/b><span data-contrast=\"auto\"> might be the best option. It&#8217;s easy to set up, and you can always transition to a company structure later if your business grows (under circumstances, there are capital gains exemptions for a rollover from a sole trader to a company).<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"28\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Planning for Growth:<\/span><\/b><span data-contrast=\"auto\"> If you plan to grow your business, seek investment or operated with unrelated parties, or want to protect your personal assets, setting up a <\/span><b><span data-contrast=\"auto\">company<\/span><\/b><span data-contrast=\"auto\"> may be more appropriate. While it requires more effort and ongoing compliance, the benefits can outweigh the drawbacks as your business expands.<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">Understanding the differences between a <\/span><b><span data-contrast=\"auto\">sole trader vs company \u2013 what you need to know<\/span><\/b><span data-contrast=\"auto\"> is essential for making the best decision for your business. Each structure has its pros and cons, and the choice you make will affect how your business operates, how you\u2019re taxed, and how much risk you take on personally.<\/span><span data-ccp-props=\"{&quot;335559739&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">If you&#8217;re unsure which structure is right for you, professional advice can make all the difference. At Rogerson Kenny Business Accountants, we specialise in helping Australian business owners choose the right structure for their needs. Contact us today to discuss your options and get tailored advice on setting up your business for success.<\/span><span data-ccp-props=\"{&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span>[\/vc_column_text][\/vc_column][\/vc_row]\n","protected":false},"excerpt":{"rendered":"<p>[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_direction_desktop=&#8221;default&#8221; column_element_spacing=&#8221;default&#8221; desktop_text_alignment=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_backdrop_filter=&#8221;none&#8221; column_shadow=&#8221;none&#8221;&#8230;<\/p>\n","protected":false},"author":11,"featured_media":8548,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5,74],"tags":[],"class_list":{"0":"post-9581","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"category-business-advice"},"acf":[],"_links":{"self":[{"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/posts\/9581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/comments?post=9581"}],"version-history":[{"count":6,"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/posts\/9581\/revisions"}],"predecessor-version":[{"id":9588,"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/posts\/9581\/revisions\/9588"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/media\/8548"}],"wp:attachment":[{"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/media?parent=9581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/categories?post=9581"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/wp-json\/wp\/v2\/tags?post=9581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}