When you first started your trade business, your structure probably wasn’t top of mind. Maybe you set up as a sole trader to keep it simple. Or maybe your accountant set up a company and you just ran with it.
But here’s the truth: your business structure isn’t something you “set and forget.”
And if you haven’t reviewed it in a while, it could be costing you thousands in tax—and even putting your personal assets at risk.
Let’s break down why the right structure matters, especially for tradies.
1. You Could Be Paying More Tax Than You Need To
Different business structures are taxed in different ways. Sole traders pay tax at individual rates, while companies and trusts offer more flexibility and can help distribute income in smarter ways.
We often see trade business owners paying tax at the top marginal rate because they’re still operating as a sole trader—even though their business has grown well beyond that point.
A better structure could save you thousands each year in tax. And those savings could go toward growing your business or investing in your future.
2. Your Personal Assets Could Be On the Line
If your structure doesn’t separate your personal and business assets, you could be putting your house, car, savings—or even your family—at risk.
For example, if you’re a sole trader or in a partnership and something goes wrong (like a legal dispute, injury, or unpaid debt), your personal assets could be exposed.
Setting up the right structure helps protect what you’ve worked so hard for—without complicating your day-to-day operations.
3. It Affects How You Pay Yourself and Your Family
Your structure also plays a big role in how you pay yourself and whether you can legally distribute income to a spouse or family member who helps in the business.
This isn’t about dodging tax—it’s about making sure you’re paying yourself in a way that’s both compliant and efficient. The right setup can help reduce your personal tax and even free up more cash in the business.
4. It Can Impact Your Wealth Building Strategy
A solid structure isn’t just about today—it’s about setting yourself up for the future.
Whether you’re planning to invest in property, build wealth through your business, or one day sell or exit, your structure will determine how easy (and tax-effective) those moves are.
Smart tradies don’t just look at how to survive this year—they think about how to set things up properly for the next 10.
5. It’s Not One-Size-Fits-All
There’s no perfect structure for every trade business. The best setup depends on your income, your team, your goals, and the level of risk in your work.
What worked for you two years ago might not be right anymore. That’s why it’s important to review your structure regularly—especially if your business has grown, changed direction, or brought on staff.
So, Is It Time for a Structure Check?
If you’ve never reviewed your business structure—or if you’re not sure what the best setup is—it’s probably time to take a closer look.
A 30-minute conversation could help you:
- ✅ Pay less tax
- ✅ Protect your personal assets
- ✅ Set your business up for long-term success
👉 Book a free discovery call with Straight Talk Accountants today.
We’ll help you get clear on where you stand—and what structure actually suits your trade business best.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.
