Tax benefits for company structure

There are some taxation benefits for companies. Companies are taxed at a flat rate of tax, regardless of whether they are residents or non-residents of Australia for tax purposes. The company tax rate is much lower than the highest marginal tax rate for individuals. This provides a benefit for the operation of the business. There is no tax-free threshold for companies.

This video shows there may be a point where it’s better from the tax benefit perspective to have a company structure rather than sole trader. However, tax rate is only one of many factors to consider when choosing your business structure.

Starting a small business

Steps Progress

Is my hobby a business?

9 mins

Business structures overview

5 mins

Business registrations

5 mins

Sole trader structure

7 mins

Partnership structure

10 mins

Company structure

13 mins

Trust structure

7 mins

Small business support

10 mins

Related courses

1 mins

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