If you are looking to grow your business, you may need to think about changing your business structure. There are four main business structures:
· Sole trader
· Partnership
· Company
· Trust.
Each structure has different reporting requirements, so it's important that you understand the obligations for your business type.
In particular, if you change from a sole trader to a company or trust, your business becomes a separate legal entity from you. Make sure you:
· report income for the correct entity, especially in the year that the structure changes
· account for private use of business assets, such as the company car
· keep private expenses separate to business expenses
· maintain separate business and personal bank accounts.
You must keep records of any decisions you make that affect your tax or super affairs, including if you change business structures.
For more info take a look at the link from the Small Business Newsroom or get in touch!
