Whether or not you are just starting a new business or have been in business for a while, it is important to understand the business structure under which your business operates. In general there are four structures: company, sole trader, partnership and trusts. Each structure has its own set of “rules” which greatly affect how you should operate your business. To better understand the differences between each structure, I have created the following table which highlights the most important aspects of these structures.
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Please note, this information is very general in nature. We advise that you speak with your accounting professional about your business structure and any other aspects of your individual financial situation before making important decisions.