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Clear Tax Accountants

Company Business Structure

If you’re involved in the world of business, you may have asked ‘what is a company business structure?’. A company business structure is a legally-recognised format of a business that features a rigid set of requirements. It is different from a sole trader, partnership, or family trust arrangement.

The characteristics of a company business structure include:

  • More rigidity and regulation
  • All money taken out of business is a wage, dividend, or loan
  • Flat rate of tax

There are opportunities within the company business structure to pay less tax while still meeting your financial obligations. Clear Tax works with individuals to help them restructure their enterprises into companies to achieve this.

Lower liability

A company is its own legal entity, so the liability of owners or members is limited to that entity. This means that you and other business owners will not be personally liable for the debts of the company, in certain circumstances.

Better governance

When restructuring to a company structure, you can decide on internal company governance yourself. This allows you greater control over the company’s replaceable rules, its constitution, or a combination of both. This enables flexible business expansion.

Concession and incentives

Where sole traders and partnerships often pay more, companies can benefit from paying a flat tax rate of 25%. There are a range of government grants and incentives available to companies that aren’t available to other structures.

Clear Tax

Business Plans For Company Structure

Restructuring from a sole trader or partnership business structure does not happen overnight. It requires meticulous planning to ensure that all setup, systemising, and growth is actioned in the most effective and efficient way. 

At Clear Tax, our tax planning experts work with businesses and individuals to create an effective company business structure that helps them pay less tax while remaining compliant with tax regulations.

Our goal is to help you meet your business goals without putting you in any risk. That’s why we always promise to act ethically, and advise you on the best course of action within the boundaries of the law.

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I have been dealing with Yuvraj for number of years. His personal, professional and prompt service is second to none, one of the many reasons i have referred her to my clients and friends. will continue to do so. Without a doubt, 5 star all the way.
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Ash and Yuvraj are a great team. They genuinely care and help people. They are professional and friendly. No matter how busy they are, they will always get back to you. I have called Ash few times and he has always called back irrespective of the time, always chirpy even over the phone. I would highly recommend their team.
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I have worked with Clear Tax Accountants in Richmond Melbourne for about one year. They have managed my returns, my Jobkeeper, my grants and all they have done very professionally and are a wonderful friendly group of friends. I recommend them if you’re considering an accounting firm.
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Highly recommended clear tax accountant. Ash and Manish and the team are providing the best services in Melbourne, extremely helpful, knowledgeable and professional. They are very responsive and answer all your queries. Always happy with their work so thank you very much.
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Ash and the team at Clear Tax have been absolutely spot-on for me and my business. Thorough, informed, approachable and, above-all, affordable, their company provides an incredibly refreshing and forward-thinking alternative to the more ‘old-school’ accountancy firms. Thank you for helping me in an area of business I do not love!
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We are delighted with the service Ash and his team at Clear Tax Accountants has afforded us since we joined them. They are very forward thinking utilising new software apps and technology. Most importantly for us, they are always accessible to help and answer our queries, as well as taking the time to get to know more about our business, Government Grants and how it works – a rare thing!
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Excellent Service & help with all aspects of my accounts. Working as a micro-business I have little time to spend on accounts and the team at Clear Tax Accountants have looked after me brilliantly from the very beginning. I feel I am in safe hands and they answer queries in a very straightforward manner so I understand everything in order to decide what to do best for my business. Delighted with Ash and Yuvraj. Thank you!
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We are delighted with the service Ash and his team at Clear Tax Accountants has afforded us since we joined them. They are very forward thinking utilising new software apps and technology. Most importantly for us, they are always accessible to help and answer our queries, as well as taking the time to get to know more about our business, Government Grants and how it works – a rare thing!
Jacqueline Chatlin
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Example Of A Company Business Structure

Entities are usually restructured to companies in the event of growth. For example, Carla is a florist working for herself out of a small flower farm and shop front. Business is booming for Carla, and she is hoping to expand by buying a new farm and hiring new staff.

Expansion requires risk. By restructuring to a company, Carla limits her liability and protects her own assets when purchasing a new farm. She can also add shareholders, investors, and co-owners, if she chooses to. She can also sell her company with little hassle, when the time comes.

Carla can also access government support. There are dozens of grants available for sustainable companies, and there is even an R&D incentive with a refundable tax offset of 48.5%. With all of these elements, Carla can grow her business with stability and confidence.

Frequently Asked Questions

About Companies
Below are answers to some of the most common company business structure questions our accountants get asked.
  • How can I change my business structure from a partnership to a company?

    Under federal Australian law, partnerships cannot be transferred directly to a company. The partnership must first be dissolved then set up and registered as a new company.

  • What are the advantages and disadvantages of a company business structure?

    There are many advantages to a company business structure. A company structure enables expansion while decreasing liability over an unlimited lifespan. There are well-defined incentives, including a 25% tax rate that is capped.

    There are also some disadvantages. Companies incur higher set-up and ongoing costs, with more limited tax concessions. Their management also requires a higher level of engagement and understanding, plus greater regulatory compliance.

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