Starting a business is exciting — but choosing the right structure is one of the most important decisions you’ll make. At Reliance Accounting, we’ve been simplifying taxes & accounting for Australians for the last 15 years, and here’s what we tell our clients:

Sole Trader

✅ Easy and low-cost setup
⚠️ You’re personally responsible for debts

Partnership

✅ Shared responsibility and funding
⚠️ Each partner is liable for debts and tax obligations

Company

✅ Separate legal entity with limited liability
✅ Good for growth and investors
⚠️ More complex and higher compliance costs

Trust

✅ Can provide tax advantages and asset protection
⚠️ Complex to set up and requires professional management

What Should Australians Consider?

• Your long-term goals
• Level of liability protection needed
• Tax efficiency
• Future growth potential

Final Word
Many Australian businesses start as sole traders and later transition into a company or trust. The key is planning ahead.