Company vs. Trust Registration: Which is Right for Your Business?

1
copywrite_at_Taxrizz.com.au
2
When setting up your business, one of the first
questions that you will need to answer is whether
to register your business as a company or a
trust. Each structure has its own benefits and
limitations, especially in the area of taxation
and protection of assets. In this blog, we will
differentiate between company registration and
trust registration to assist you in making the
right decision for your business. 
copywrite_at_Taxrizz.com.au
3
Understanding Company Registration Registe
ring your business as a company separates it
legally from its owners. This helps in providing
a mechanism of limited liability, which protects
an individuals own property from being used to
settle business losses. Other legal
characteristics of business include Perpetual
succession whereby the business can go on being
carried even if the owners change.  From a
taxation standpoint, there is a corporate tax
rate that can be different depending on the
country. Therefore, engaging the services of a
professional tax accountant in Melbourne CBD or
Coffs Harbour can help in managing the tax
issues. Also, it is known that some forms of
business structures may enjoy some tax shields
that are not available to others. 
copywrite_at_Taxrizz.com.au
4
Exploring Trust Registration  Trusts are
not as independent legal structures as companies
are. They exist in a legal structure where an
individual or a company is appointed to oversee
property for the sake of others. The structure of
trusts is bendy in presenting income and assets,
which is useful for estate and asset
preservation.  In this case, the taxation of
trusts does not follow the same process as the
taxation of companies. It is worth mentioning
that common trusts are taxed at the individual
tax rates of the beneficiaries, thus, they can
provide certain options for tax avoidance.
However, the distribution of income has to be
done within the provisions of the trust deed and
the law on taxation. 
copywrite_at_Taxrizz.com.au
5

Choosing the Right Structure  The choice between
the company and the trust registration depends on
the specific goals, taxes, and protection of the
assets that you are going to use for the
business. It is advisable to speak to the best
tax accountant in Coffs Harbour or Melbourne CBD
to get information specific to your
situation.  In the end, there is no definitive
solution. Choosing between company and trust
registration is a question of a thorough analysis
of your business plans and direction as well as
experts recommendations. If one analyses the
advantages and disadvantages of each structure,
one is able to arrive at a sound decision to get
the business on the right track.
copywrite_at_Taxrizz.com.au