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Choosing a business structure: sole trader, companies, trusts & ACNs v. ABNs [7/12]

Sole trader, ABN, company, ACN... what's the difference? Australian Business Podcast episode #7 is now live on the Rask network and we're tackling how to choose a business structure to suit your business needs.

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Sole trader, ABN, company, ACN… what’s the difference? Australian Business Podcast episode #7 is now live on the Rask network and we’re tackling how to choose a business structure to suit your business needs.

In this episode, I — Owen Rask, founder of The Rask Group — dive into the following business topics:

Company legal structures – pros and cons
Sole traders – pros and cons
Partnerships – pros and cons
Trusts – including family/discretionary trusts and unit trusts
3 case studies and my business structure suggestions:
1. Jenny, the hairdresser 💇‍♀️
2. Scott, the plumber on a mission🚰
3. Gavin & Cassie, the architects 🏘
Enrol in our free business course and view this tutorial

TL;DR (or still confused?)

Ultimately, chances are, you don’t need to decide on a trust, partnership or company structure straight away. There’s a reason 60% of Australian businesses are simple sole traders with just an ABN!

The bigger you get (employees, assets, income) and the riskier your business is — or could be — the more pressing it is to determine the best structure. Please consider getting multiple opinions (e.g. 2 accountants, two lawyers and an accountant, etc.) if you plan to build an empire. For a humble small business, side hustle or lifestyle business, a sole trader is probably enough to get you started. At least now you know the risks and benefits involved.

If you have any questions you can flick them over to me using our question Typeform, or inside the Rask membership.

This episode of The Australian Business Podcast aligns perfectly with lesson seven of Rask’s free business course: choosing a sole trader or company structure.

You can download our business plan template on Rask Education.

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Send us your business questions for this weekend’s episode

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Grey Space Advisory – snag a $100 health check

Do you get stuck worrying about your business’ finances? Or what needs to be paid to ATO, employees, Super funds and so on? The Australian Business Podcast is proud to announce that our sponsor, Grey Space Advisory, is offering all business owners a financial health check.

Jordan and Danil’s expert team of accountants will conduct a review of your tax structure, bank setup, ATO obligations and reporting, business insurance and provide some advice on how to manage all of this — for just $99! You can book a $99 health check with the Grey Space Advisory team and tell them Owen sent you.

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Rumble Coffee Roasters is dedicated to helping you drink better coffee. Knock-out blends, world-class single origins, bold espressos and flavour-filled filter roasts. Rumble Coffee prides itself on personal relationships with producers and customers alike.

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Rask – Get Owen’s best investing research

The Australian Business Podcast’s official sponsor is Rask, our very own company. We empower hundreds of thousands of investors around Australia, whether you’re new or have been investing for 40 years. You can take an investing course on Rask Education to discover how Owen carefully researches small or blue chip companies, or become a premium Rask member today to speak directly with Owen and see what he is investing in.

As Warren Buffett famously said, “I am a better investor because I am a businessman, and a better businessman because I am no investor.”

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