When you start a business you need to choose a business structure.
There are four main ways businesses are set up in Australia – sole trader, partnership, company and trust – and each one has different tax responsibilities.
A sole trader is the simplest business structure and the cheapest to set up. Many businesses decide to start small as a sole trader.
But you need to choose what's right for you. The structure you choose can affect things like the tax you pay and how debts are treated. You can also change the structure later if you want to.
If you need advice or help with deciding on a business structure, talk to a registered tax agent.
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Different business structures have different tax responsibilities, so it's important to choose the structure that's right for you. There are four main types of business structures in Australia.