Choosing the Right Type of Business

When starting a new business, it is a time of excitement as you can finally be your own boss and do things your way. You get to chase your dreams while bringing your vision for a new brand to reality.

However, many people find the initial start-up phase to be overwhelming, with legal and financial jargon often causing confusion. Any advice you receive may be contradictory, and you could end up making unnecessary mistakes. At Phoenix Accountants and Advisors, we are registered ASIC agents, and have the experience and knowledge to help you get your business started the right way.

We offer a unique start up consulting service which covers a range of obligations relating to the structure of the business. We recommend you do your research and figure out the viability of your business, before writing a thorough business plan.

The Right Type of Business

Before you can move forward, it is important to determine what type of business you will be running. Are you going out on your own as a sole trader, with a friend or forging a new company?

Sole Trader

When you start a business as a sole trader, there are minimal costs involved and it can be set up in a short period of time. We can assist you in setting up an ABN and advise you on the most appropriate way to meet your GST and tax obligations. This style of business is common for small start ups as setting up is a simple process. It is important to remember there are potential risks because your business will be connected to your personal assets.

Partnership

The risks of a partnership are similar to that of a sole trader, but there are multiple people involved. Before starting a partnership, a deed needs to be created to ensure every partner is in agreeance. We can assist you in setting up an ABN, TFN, and GST registration. Your assets may still be at risk, and any turnover will relate directly to the partners involved.

Company

When you start a company, the personal risks and liabilities are significantly reduced. A company has high administration costs but gives you the security and protection a larger scale business needs. We can assist you in obtaining any required legal documents which may include an ACN, Company Constitution, ABN, TFN and GST registration.

Trusts

There are two main types of trusts with unit trusts or discretionary trusts. For discretionary trusts this starts with a trust deed where beneficiaries are listed, often members of a family. The trustee is responsible for carrying out the business for those beneficiaries. There is a compliance cost to operate and any risks of liabilities sit with the corporate trustee. If you are considering setting up a trust, we can assist you in obtaining an ABN, TFN, and GST registration.

Regardless of the type of business you intend to operate, it is beneficial to follow the right processes from the beginning.

At Phoenix Accountants and Advisors, our Start Up Consulting service will give you access to advice you can trust. Please contact us for more information on how we can assist your new business venture in Perth, WA.