The Importance of the Right Trading Structure

In the frenzy of operating a business on a day-to-day basis, it can be easy to lose sight of some of the bigger picture issues. ABN Tax explain how having the right trading structure is critical on so many fronts and really does deserve the attention of both you and your advisor.


The right trading structure is critical on so many fronts. Saving tax is often a primary consideration, however there are many others that need to be considered. In evaluating the appropriateness of one’s trading structure, here are just some of the questions which need to be asked:


  1. Is the structure effective from an income tax perspective?
  2. Will the structure be suitable for minimising or even eliminating capital gains tax when the business is sold in the future?
  3. Does the structure allow for liability to be limited?
  4. Does the structure allow for my personal assets to be protected?
  5. Does the structure allow for passive business assets such as real estate and intellectual property to be separated from the day-to-day risks of trading?
  6. Can the structure be adequately catered for in my will to enable a smooth transition to occur if something were to happen to me?
  7. Is the structure suitable from a succession planning point of view, if for example, I wish to transfer some or all of the business to employees or family members?
  8. Will recent changes in tax laws have a bearing on the ongoing usage of the structure?


At ABN Tax, we are introduced to many clients who have the wrong trading structure for them. As a result, they are paying more tax than they should be or are being exposed to unnecessary risks. In some cases, this is because their business has changed substantially and their trading structure has not been reviewed by their advisor for many years. In other cases, it is because they were badly advised in the first place.


At ABN Tax, our expert team of qualified tax advisors can work with both you and your bookkeeper to ensure that the trading structure which you utilise is the most appropriate for your circumstances.



For further information on ABN Tax, please:

- Visit our web site at;

- Contact your bookkeeper; or

- Call us direct on 1300 622 750.