Quick Comparison
| Structure | Liability | Tax Rate | Compliance | Setup Cost |
|---|---|---|---|---|
Sole Trader | Unlimited personal liability | Individual rates (19-45%) | Very Low | $0-$200 |
Partnership | Joint and several unlimited liability | Individual rates for each partner | Low | $500-$2,000 |
Company | Limited to company assets | 25% (small biz) or 30% (standard) | High | $1,500-$5,000 |
Discretionary Trust | Limited (with corporate trustee) | Distributed at beneficiary rates | Very High | $3,000-$8,000 |
Unit Trust | Limited (with corporate trustee) | Flow-through to unit holders | High | $2,500-$6,000 |
Detailed Analysis
Sole Trader
Single owner only
Liability:
Unlimited personal liability
Tax Rate:
Individual rates (19-45%)
Setup Requirements
Cost:$0-$200
Time:1-2 days
ABN registration
Business name (optional)
Basic insurance
Ongoing Requirements
Annual Cost:$500-$2,000/year
Reporting:
Individual tax return
BAS (if GST registered)
Best For
Low-risk service businesses
Testing business ideas
Part-time or side businesses
Partnership
2-20 partners
Liability:
Joint and several unlimited liability
Tax Rate:
Individual rates for each partner
Setup Requirements
Cost:$500-$2,000
Time:1-2 weeks
Partnership agreement
ABN registration
Business name registration
Ongoing Requirements
Annual Cost:$2,000-$5,000/year
Reporting:
Partnership tax return
Individual partner returns
Best For
Professional practices (law, accounting)
Family businesses
Joint ventures
Company
Shareholders (unlimited number)
Liability:
Limited to company assets
Tax Rate:
25% (small biz) or 30% (standard)
Setup Requirements
Cost:$1,500-$5,000
Time:2-4 weeks
ASIC registration
Constitution/replaceable rules
Share structure
Directors appointed
Ongoing Requirements
Annual Cost:$3,000-$15,000/year
Reporting:
Company tax return
ASIC annual review
Financial statements
Best For
Medium to large businesses
Asset protection requirements
Multiple owners/investors
Discretionary Trust
Beneficiaries (flexible)
Liability:
Limited (with corporate trustee)
Tax Rate:
Distributed at beneficiary rates
Setup Requirements
Cost:$3,000-$8,000
Time:3-6 weeks
Trust deed
Corporate trustee
ABN/TFN
Appointor designation
Ongoing Requirements
Annual Cost:$5,000-$20,000/year
Reporting:
Trust tax return
Distribution statements
Trust minutes
Best For
High-income earners
Family businesses
Investment properties
Unit Trust
Unit holders (proportional)
Liability:
Limited (with corporate trustee)
Tax Rate:
Flow-through to unit holders
Setup Requirements
Cost:$2,500-$6,000
Time:2-4 weeks
Trust deed
Unit holder agreements
Corporate trustee
ABN registration
Ongoing Requirements
Annual Cost:$4,000-$15,000/year
Reporting:
Trust tax return
Unit holder statements
Distribution records
Best For
Joint investment ventures
Property syndicates
Investment funds