Business Structure & Setup
Setting up a new business in Mandurah or the Peel region? Turn to the experts in business accounting to walk you through the process. WealthVisory’s accountants are here to handle new business set-up in Mandurah and surrounds, as well as assisting with business planning and business strategy.
We can also assist with restructuring an existing business, even if you’re curious about the ways restructuring could benefit your business. If you’re thinking about purchasing a business, you may also need assistance understanding its current structure and what the implications are for you as an owner.
If you’re looking to restructure or set up a new business in Mandurah or surrounds, WealthVisory are the local business experts you can count on for sound advice.
New Business Set-Up
The steps to starting a new business in Australia can be intimidating, especially if you’re a first-time small business owner. You may be preoccupied sourcing finance, finding premises or purchasing the tools necessary to run the business day-to-day.
But it’s not enough to simply get your business venture off the ground – it’s important to ensure your business is set up according to legal and financial best practices. From a small online business or ecommerce venture to trades or service-based businesses, all business owners need to meet legal requirements and keep thorough financial records to avoid problems further down the track.
When starting a new business, it’s essential to ensure:
- You’re choosing the best business structure for your circumstances
- Your business is properly registered and approved to operate under that structure
- Your business name and ABN or ACN is properly registered
- Essential business bookkeeping and financial record-keeping is maintained from day one
In terms of legal requirements to start a business, WealthVisory can assist with:
- ABN and ACN applications
- Business Name Registrations
- Goods and Services Tax (GST) Registration
- Corporate Registry services (ie. forming a company)
- Setting up a trust in Australia
One of the most important decisions a new business owner will make is choosing a business structure. It’s vital to work out which structure is ideal for your circumstances early in the process, as the structure you choose will determine what legal steps you need to take to set up a business.
If the right applications aren’t completed and lodged through the proper channels, it may not be legal for your business to operate with a particular structure, or to operate at all.
The pro and cons of each business structure need to be carefully considered, and choosing the wrong structure can have disastrous financial consequences for both the business and the owner.
The most common business structures are:
- Sole Trader
- Family Trust
- Unit Trust
When choosing how to structure your new business, it’s a good idea to get advice from an expert. WealthVisory has extensive experience as business advisors, helping small businesses and larger firms identify the best structure for their needs as well as completing the applications required for legal recognition.
Choosing A Business Structure
Ultimately, there’s no one business structure that’s universally better than others, even within specific industries and niches. However, this does mean that looking at other businesses in your industry doesn’t always indicate which structure will be ideal for your circumstances.
The reality is that there are pros and cons of each business structure – it’s all about finding the right fit for your circumstances and your individual goals when going into business.
Some factors to consider when choosing a business structure:
- Personal and financial resources available: the costs of setting up a business will vary according to the business structure, as will the amount of time and energy required
- The nature of business owners: suitable business structures will vary based on the number of owners (or beneficiaries), the relationships between owners, and long-term plans for ownership
- Level of control: the extent to which you (and other prospective owners) want to retain control over business decision-making
- Asset protection or liability concerns: strategies to manage the risk of going into business and protect the personal assets of business owners
- Taxation implications: from the complexity of taxation requirements to the specific taxation rates which apply to each structure
- Compliance and reporting requirements: complexity and cost of ongoing administration required by law
In the life cycle of every business, there are times when you may consider changing the structure of the business – or may be interested in finding out what the benefits of restructuring are.
As a business grows over time, it’s likely that the goals and objectives of the business will also evolve with it. The priorities and resources of business owners often change, and a business experiencing a growth in revenue may also benefit from restructuring in order to find a more optimal tax arrangement.
Reasons for restructuring a business include:
- Pivoting to better suit long-term business goals and trajectory
- Allowing for changes in ownership (eg. sole trader to partnership or company)
- Raising further capital to expand the business (through investment or share purchase)
- Seeking to legally minimise taxes on the business or owner income
Of course, if a business owner isn’t aware of the possibilities for restructuring, it’s possible that leaving it on the backburner means missing out on potential benefits for the business.
If your business has shifted direction, experienced growth or is facing obstacles to further growth, it’s a great time to get in touch with a business accountant to find out if restructuring could benefit the future of your business.
Setting Up A Company
When it comes to business structure, people can often be deterred from forming a company due to the complexity of set-up and ongoing legal requirements. Business owners can often be surprised to find out that forming a company could be a suitable option for them, even if they consider themselves a small business.
When people talk about ‘companies’ casually, we’re usually referring to large corporations, but the reality is that even a small business can be a company, and under the right circumstances, incorporation can deliver many benefits for small-to-medium businesses.
Building a relationship with an experienced business accountant can also open up avenues for business structure where requirements would otherwise exceed what’s available in-house.
At WealthVisory, we’ve assisted countless businesses with the process of incorporation, helping our clients change their business structure as their needs and goals evolve.
To find out more about setting up a company in Australia, contact us at WealthVisory via phone or through the website.
Setting Up A Trust
Similar to companies, setting up a trust often ends up in the ‘too hard basket’ in circumstances where it could be an excellent strategy for long-term wealth.
As complex as it sounds, the basic principle of a trust allows people (or companies) to manage property (including real estate, assets or a business) to benefit someone else (the beneficiary). The trustee must act in the best interests of the beneficiary, who receives income or capital (or both) from the trust.
The appeal of setting up a trust is that trusts are treated differently in legal terms to other forms of business. Trusts offer many options for business owners to manage their tax obligations and protect assets from business risk.
Many people choose to set up a trust when their family circumstances change, allowing them to name their children as beneficiaries of the trust.
Interested to know if setting up a trust could benefit you and your family? WealthVisory can help walk you through the options and establishment process. To make an enquiry, contact us through the website or give us a call today.
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To find out more about the services that we offer at WealthVisory, book an appointment online with us today.