When you first started your business, you probably picked a structure based on what was quickest, cheapest, or what your accountant suggested at the time.
But here’s the thing…
What made sense then might not be serving you now.
As your business grows, your structure can either save you thousands or hold you back. And yet, many business owners never review it again – until there’s a problem.
So, let’s break it down…
What is a Business Structure (and Why Should You Care)?
Your business structure is basically how your business is legally and financially set up. Common structures in Australia include:
Sole Trader – simple, but no asset protection and limited tax planning options
Company – more admin, but better asset protection and potential tax advantages
Trust – flexible for distributing profits, but needs the right setup and maintenance
Self Managed Super Fund (SMSF) – while not a trading entity, an SMSF can be a powerful vehicle for building long-term wealth and managing retirement savings. There are very strict rules around SMSFs, so if you’re considering this structure, it’s essential to seek expert advice to ensure you’re meeting all compliance requirements and making informed investment decisions.
Each comes with pros and cons, especially as your revenue grows, your family situation changes, or you want to scale.
Signs It Might Be Time to Review Your Structure
✅ You’re consistently paying yourself (or others) more than your salary
✅ You’ve grown past six figures and your tax bill is creeping up
✅ You want to bring on a business partner or investor
✅ You’re thinking about succession, sale, or estate planning
✅ You’re unsure whether your personal assets are protected
Why This Matters (and What You Could Be Missing)
Here’s what a better-fit structure can help with:
Lowering your tax bill through better profit distribution
Protecting your personal assets in case something goes wrong
Streamlining compliance and making it easier to bring in others
Future-proofing your business for growth, sale, or handover
How Often Should You Review It?
We recommend reviewing your structure at least every few years, or when major business or personal changes happen – like hiring staff, big profit increases, or planning to buy/sell assets.
Not Sure Where to Start?
You don’t need to overhaul everything tomorrow. Sometimes a small tweak makes a big difference.
📩 Get in touch with us if you’d like to talk through whether your current setup is still the best fit.
It could be the easiest way to save thousands – and sleep easier knowing you’re protected.
Disclaimer: This post is general information only and doesn’t take your personal situation into account. Always seek professional advice before making changes to your business structure.
