Business set up and structure advice in Penrith.
The decisions you make when starting or restructuring a business have lasting tax and legal consequences. Carmody Accounting helps business owners across Western Sydney get the structure right from day one — and protect everything they build along the way.
Your business structure affects tax, liability, administration and future options.
Many businesses start with a simple structure and revisit it as revenue, ownership or risk changes. Restructuring later can involve additional tax, legal and administration considerations, which is why it helps to understand the trade-offs early.
Carmody Accounting works with new and existing business owners across Penrith and Western Sydney to ensure every structural decision is made deliberately, with a full understanding of the tax, legal, and practical implications.
Whether you're starting a business, restructuring an existing one, buying a business, or planning for exit — we provide the advice and implementation you need to do it correctly.
Business set up & advisory services
- Business structure advice (sole trader, company, trust, partnership)
- ABN and company registration with ASIC
- GST, PAYG, and tax registration
- Shareholder and director setup
- Asset protection strategies
- Business purchase due diligence and review
- Succession planning and exit strategies
- Business name and trademark considerations
- Startup cashflow modelling and financial projections
- Ongoing strategic advisory as your business grows
The decision most owners get wrong
When should a sole trader consider becoming a company?
When the tax savings, legal protection or growth needs of a company start to outweigh the extra setup and running cost — and usually before a big jump in profit or risk, not after.
A company gives you limited liability (your personal assets are generally separate from business debts) and a flat company tax rate, but it adds ASIC fees, annual compliance and stricter record-keeping. The right time depends on your profit, the risk in what you do, and whether you plan to bring in partners, investors or employees.
There is no universal profit threshold that makes a company the right answer. The decision should consider tax, legal risk, ownership, administration and future plans together.
Restructuring later can trigger capital gains tax (CGT) and stamp duty if not done carefully, so it's usually cheaper to get the structure right before the jump than to unwind it afterwards.
Bring your current profit and risk picture to a structure review —Book a structure review
This is general information for Australian business owners, not personal accounting or tax advice tailored to your circumstances. Book a consultation before acting on it.
Business structures explained — what's right for you?
Sole Trader
The simplest structure — low cost to set up and operate. But your personal assets are exposed to business liabilities, and you pay tax at your marginal rate with no income splitting available.
Best for: Low-risk freelancers, contractors, or those just starting out with minimal income.
Company (Pty Ltd)
A separate legal entity with its own tax and reporting obligations. Limited liability can apply, subject to the circumstances and directors' obligations. Companies are more complex to establish and maintain than a sole trader structure.
May suit: Businesses where separate legal ownership, growth or risk considerations justify the extra administration.
Trust (Discretionary)
A trustee holds and manages assets for beneficiaries under the trust deed. Discretionary trusts can provide distribution flexibility but involve additional tax, legal and administration requirements.
May suit: Situations where flexibility of ownership or distributions is relevant and the ongoing obligations are understood.
Partnership
Two or more individuals sharing ownership, profit, and liability. Simple to establish but each partner is jointly liable for debts. Profits flow directly to each partner's personal return.
Best for: Professional practices or business partners with equal involvement.
| Feature | Sole trader | Company | Trust |
|---|---|---|---|
| Legal liability | Personal assets at risk | Limited liability — personal assets generally separate | Assets held by trustee; beneficiaries' interests protected |
| Tax treatment | Profits taxed at your personal marginal rates | Profits taxed at the company rate | Income distributed to beneficiaries, taxed in their hands |
| Setup cost | Low | Higher (ASIC fee + setup) | Higher (trust deed + setup) |
| Ongoing compliance | Minimal | ASIC annual review + corporate obligations | Trust accounting + annual distributions |
| Best when | Starting out, low risk, simple | Consistent profit, risk, or growth | Family businesses, asset protection, income flexibility |
Not sure which structure is right for your situation? Talk to the Carmody Accounting team in Penrith.
Get a RecommendationStarting or structuring a business in Penrith — what you need to know
Setting up a business in Australia — the key steps
Registering a business in Australia involves several steps: choosing a structure, registering an ABN, registering the business name, setting up the relevant tax registrations (GST, PAYG, FBT), and ensuring any legal agreements (shareholder agreements, employment contracts) are in place.
Getting the sequence right matters. Registering for GST too early can create unnecessary obligations; failing to register when required creates ATO penalties. Carmody Accounting manages the entire setup process on your behalf, ensuring everything is done correctly and in the right order.
Asset protection for Western Sydney business owners
One of the most important — and most overlooked — aspects of business structuring is asset protection. If your business faces a claim from a creditor, a dispute with a client, or a personal liability event, the right structure can mean the difference between losing your family home and keeping it.
For business owners in trades, construction, professional services, and property development — sectors with inherent risk — structuring your affairs correctly from the start is not optional. It's essential. Carmody Accounting advises on holding structures, separate entity arrangements, and strategies that work practically alongside your operational requirements.
Buying a business in Penrith — due diligence checklist
Buying an existing business is one of the most significant financial decisions you'll ever make — and one of the riskiest if done without proper due diligence. Common issues uncovered in financial due diligence include inflated revenue figures, understated expenses, unrecorded liabilities (including ATO debts), related-party transactions that inflate profitability, and normalisation adjustments that change the true earnings picture.
Carmody Accounting reviews the financial statements, tax returns, BAS history, and ATO correspondence for any business you're considering purchasing. We'll tell you what the numbers really look like — and what you're actually paying for.
Business succession and exit planning
Every business owner will eventually exit their business — through sale, transfer, or retirement. The way that exit is structured can have enormous tax consequences. The small business CGT concessions available under Australian tax law can significantly reduce or eliminate the capital gains tax on a business sale — but only if the structure and timing are right.
Carmody Accounting works with business owners well in advance of any planned exit to ensure the business is structured to access available concessions and the proceeds of sale are managed in the most tax-effective way possible.
Key terms, in plain English
ABN (Australian Business Number) — an 11-digit identifier issued by the Australian Business Register that identifies your business to government; it's not a tax registration by itself, but you need it for GST, PAYG and invoicing.
Pty Ltd (Proprietary Limited) — a private company with limited liability for its shareholders; it's a separate legal entity that owns its own assets and debts.
Discretionary trust — a structure where a trustee holds assets for beneficiaries and can decide how income is distributed among them each year.
Asset protection — arranging your affairs so personal assets (such as your home and savings) are kept separate from business risk.
CGT (Capital Gains Tax) — the tax on a capital gain when you sell an asset such as a business; small business concessions may reduce it.
Stamp duty — a state tax on certain transactions, including some transfers of business assets or restructuring steps, charged by Revenue NSW in New South Wales.
- Australian Taxation Office (ATO)
- ASIC
- Australian Business Register (ABR)
- Revenue NSW
- Federal Register of Legislation
- Business structure and tax treatment: see the Australian Taxation Office (ATO).
- Company registration and fees: see ASIC — confirm the current prescribed fee before registering.
- ABN and business name registration: see the Australian Business Register (ABR).
- Stamp duty on restructuring or asset transfers in NSW: see Revenue NSW.
- Corporations law and tax legislation: see the Federal Register of Legislation.
Rates, thresholds, lodgement dates and concession rules can change — confirm the current position with the primary source above before acting.
Business structure & set up FAQs
What is the best business structure in Australia?
There's no single 'best' structure — the right choice depends on income, risk, ownership, growth plans and the compliance burden each option creates. A sole trader, company, trust or partnership can each be appropriate in different circumstances. Carmody Accounting can help you compare the options and understand the tax and practical implications before you decide.
How much does it cost to set up a company in Australia?
ASIC charges a prescribed company-registration fee that it updates periodically. Other setup costs depend on the structure, documents and registrations required. Carmody will outline the proposed scope and pricing before work proceeds.
Should I use a trust for my business?
A discretionary trust can provide flexibility in how income is distributed, but it also creates legal, tax and administration obligations and is not appropriate for every business. Whether a trust makes sense depends on the people involved, the assets and risks, and the purpose of the structure.
I'm buying an existing business — can you help?
Yes. We conduct thorough financial due diligence on the target business, review the historical financials for irregularities, advise on the purchase structure (asset vs share sale), and ensure you're not inheriting any hidden tax liabilities or ATO debts. This is a critical step that many buyers skip — to their significant cost.
When should I restructure my business?
Common triggers include significant revenue growth, taking on employees, bringing in a business partner, separating assets from trading risk, planning for eventual sale, or a major change in personal circumstances. Restructuring can have significant stamp duty and CGT implications if not done at the right time and in the right way — which is why specialist advice is essential.
What is asset protection and why does it matter?
Asset protection refers to structuring your business and personal affairs in a way that shields your personal assets (home, savings, investments) from claims by business creditors or legal action. For business owners in trades, construction, professional services, or property, this is critically important. The right structure, put in place before a problem arises, can make the difference between losing everything and keeping what you've built.
Starting or restructuring a business?
Book a free 15-minute call with Jai to explain what you're setting up or changing and identify the right next step.
Get in Touch