Choosing a business structure: sole trader, companies, trusts & ACNs v. ABNs [7/12]

Sole trader, ABN, company, ACN… what’s the difference? Australian Business Podcast episode #7 is now live on the Rask network and we’re tackling how to choose a business structure to suit your business needs. 

In this episode, I — Owen Rask, founder of The Rask Group — dive into the following business topics:

1. Company legal structures – pros and cons
2. Sole traders – pros and cons
3. Partnerships – pros and cons
4. Trusts – including family/discretionary trusts and unit trusts
5. 3 case studies and my business structure suggestions:
   1. Jenny, the hairdresser 💇‍♀️
   2. Scott, the plumber on a mission🚰
   3. Gavin & Cassie, the architects 🏘
6. Enrol in our free business course and view this tutorial

TL;DR (or still confused?)

Ultimately, chances are, you don’t need to decide on a trust, partnership or company structure straight away. There’s a reason 60% of Australian businesses are simple sole traders with just an ABN!

The bigger you get (employees, assets, income) and the riskier your business is — or could be — the more pressing it is to determine the best structure. Please consider getting multiple opinions (e.g. 2 accountants, two lawyers and an accountant, etc.) if you plan to build an empire. For a humble small business, side hustle or lifestyle business, a sole trader is probably enough to get you started. At least now you know the risks and benefits involved.

If you have any questions you can flick them over to me using our question Typeform, or inside the Rask membership.

This episode of The Australian Business Podcast aligns perfectly with lesson seven of Rask’s free business course: choosing a sole trader or company structure.

You can download our business plan template on Rask Education.

Love the Australian Business Podcast? Let me know about it by leaving a review on Apple or Spotify. 

If you want to help me out with the course, right now the best thing you can do is subscribe and review this podcast in Apple or Spotify. Please use the “Ask a question” menu link on the Rask websites, or leave your questions in the Apple Reviews.