The appropriate structure depends on your ownership, risks, income, plans and willingness to manage ongoing obligations. A company is a separate legal entity and generally involves more administration than operating as a sole trader.
What this means in practice
Tax is only one part of the decision. Consider liability, how owners take money out, record keeping, legal agreements and the cost of maintaining the structure. There is no single turnover figure that makes a company right for everyone. A discussion with the relevant accounting and legal advisers is more useful than choosing a structure solely from a headline tax rate.
Your next steps
- Consider ownership and risk
- Compare ongoing administration
- Review how money will be withdrawn
- Obtain advice before registering
Get help with the next step
If this relates to your business, tell us about your current records and the task you need help with. We can explain our service scope and the information needed before work starts.
Official guidance: Australian Government: Business Registration Service ↗
General information prepared on 26 September 2026. Rules and individual circumstances can change. Confirm the treatment that applies to you before acting.
Prepared by the Affordable Bookkeeper content team. Our services and practitioner arrangements.
