Choosing your business structure is one of the most important decisions you’ll make as a business owner.
Choosing the right structure can maximise tax opportunities and minimise risk, ultimately contributing to the financial success of your business. Aside from causing operational pain, the wrong business structure can literally cost hundreds of thousands of dollars over the life of your business.
5 signs your business structure needs attention
1. Taking on a business partner
This will require you to consider changing from a sole trader to a partnership, company or unit trust structure
2. Restructuring to meet financial goals and objectives
Such as improving cash flow or retaining more funds within your business for working capital or reinvestment
3. Reorganising your internal functions
Separating out different business units, or applying for government grants
4. You have expanded
Either geographically to overseas markets or you’re expanding the product functions of the business and you need to change your structure to accommodate this growth
5. Ready to downsize or simplify your business structure
This could mean moving from a company to sole trader
Getting the right business structure in place is one of the biggest business decisions you can make throughout your business lifecycle.
What’s important is to ensure the structure you choose is the most relevant to you and your business. We’ve covered this in an earlier blog: How the wrong business structure can cost you millions
Want to know which structure will best suit your needs?
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