Is your business structured right? Sole trader vs Business vs Partnership | ft. David Rosenthal | Ep. 423

The Site Shed

Choosing the right trade-based business structure is crucial for every Aussie trades person aiming to succeed in 2025. In this episode, we cover the ins and outs of starting as a sole trader, partnership, PTY LTD company, or trust. Learn how each structure affects taxes, liability, and the ease of expanding your business. If you're considering starting or restructuring your trade-based business, this guide will equip you with the knowledge to protect your assets and grow your venture effectively.
Watch the video version of this podcast at https://youtu.be/8CDuj469fMY

Discussion Points:

00:00 Simplify content for universal understanding and communication.

05:58 Easy entry, tax advantages, but unlimited liability.

07:05 Start with unlimited liability; consider partnership later.

12:10 Start honest talks early to avoid conflicts.

13:34 Friends in business risk ruined friendships.

18:20 Understand taxing implications of company withdrawals.

20:14 Transitioning to new ABN requires extensive administrative work.

25:42 Loss treatment differs for business structures.

28:39 Trust benefits adult beneficiaries with low taxes.

31:41 Confusing tax savings with cash savings explained.

33:53 Consider restructuring after 130,000 profit threshold.

37:07 Separate entities protect assets through strategic division.

39:22 Understand write-offs to avoid being scammed.

Resources:

• Visit Retinue’s website at www.retinue.com.com.au
• Get in touch with David at [email protected]

Let us know what you think! Send us a text.

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