Are you outgrowing your current business structure or is your business growing at a rate you cannot keep up with? You may need to consider changing your business structure. Here are the four main business structures.

• Sole trader
• Partnership
• Company
• Trust

Each structure has different reporting requirements. So, it's imperative you understand the obligations for your business type.

In particular, if you change from a sole trader to a company or trust. This is because your business then becomes a separate legal entity. Make sure you:

• report income for the correct entity, especially in the year that the structure changes
• account for private use of business assets, such as the company car
• keep private expenses separate to business expenses
• maintain separate business and personal bank accounts.

You must keep records of any decisions you make that affect your tax or super affairs, including if you change business structures.

If you are considering changing your business structure or even need some assistance with bookkeeping or record keeping, we suggest calling Taxwise (08 9248 8124) for advice. We will discuss your business in-depth with you to determine the best course of action for your growing business.