Choosing the Right Business Structure for Your Startup

Relevant For:

Start-up founders, small business owners and entrepreneurs.

Key Points:

  • Keep risk separate from wealth.
  • Start with simple strategies: one person holds home, another runs business.
  • Incorporate a limited liability company to separate business risk.
  • Consider a dual-entity structure as the business grows.
  • Add a trust for two-way risk quarantining.
  • Focus on tax optimisation.
  • Plan exit strategy: aim for capital gains tax efficiency.
  • Note the importance of a 20% ownership interest for Small Business CGT concessions.

Full Article:

Selecting the ideal business structure for your start-up is a delicate balance of art and science. It involves juggling several objectives that often compete with each other.

Risk and Wealth Separation

The first rule is to keep your risk separate from your wealth.

Decide how much you're willing to risk in your business venture. Without this separation, you could jeopardise everything for minimal gain.

A simple way to start is

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