Company vs Trust Structure EXPLAINED SIMPLY (Australia) #shorts

Which structure is better: sole trader, company, or a trust? 🤔
I get asked this ALL the time, but the answer isn’t so simple.

Let’s look at 2 different scenarios:

If you’re a freelance graphic designer who’s starting to hire employees and take on bigger contracts, switching from a sole trader to a company is really beneficial for the lower tax rate and legal protection ✅

But if you have a large family, some who don’t work, and you own investment properties, a trust structure is more suitable, since you can distribute the rental income to family members in lower tax brackets.

So as you can see, it all depends on your situation. That’s why you need to seek professional advice that’s best for you!

#businessstructure #company #trust #accounting #businesstips