Company vs Sole Trader — Making the Right Choice
One of the biggest decisions for Brisbane small business owners is whether to operate as a sole trader or register a company. A sole trader structure is simple and cheap to set up, but income is taxed at your personal marginal rate — up to 47% plus Medicare levy. A company (Pty Ltd) pays a flat 25% tax rate for base rate entities, provides limited liability protection for your personal assets, and gives you more flexibility in how and when you take income from the business.
However, companies come with additional compliance requirements including annual ASIC fees, separate tax returns, and director obligations. We analyse your projected income, risk profile, and growth plans to determine whether the tax savings and asset protection justify the additional compliance costs. For most businesses earning over $100,000, a company structure delivers meaningful benefits.
Our tax planning and business advisory teams work together to ensure your structure supports your long-term goals.