Accountants for Sole Traders.

There’s no fixed threshold. It depends on your actual profit (not just revenue), how much you need personally versus can leave in the business, your growth plans, your asset position, and your risk exposure. Some businesses benefit from restructuring at $120K profit, others not until $200K+. We analyse your specific numbers rather than applying generic rules. The crossover point is where tax savings exceed the additional costs of operating through a company.

Setup costs are typically $2,000-$5,000 including entity registration, trust deeds if using trusts, legal advice on contracts, and initial accounting setup. Ongoing costs increase by $3,000-$6,000+ annually for more complex tax returns, ASIC fees, audit requirements for larger companies, and additional accounting time. These costs need to be offset by tax savings for restructuring to make financial sense.

Potentially, but not automatically. Companies pay 25-30% tax on profits versus your personal rates of up to 47%. However, you pay personal tax again when taking money out as dividends or wages. The benefit depends on how much profit you can leave in the company versus need personally. If you extract everything, the overall tax might be similar or even higher. We model your specific situation to show the actual tax outcome.

Yes, most small business concessions are available to companies meeting the eligibility tests. That includes instant asset write-off, small business CGT concessions, simplified trading stock rules, and small business income tax offset where applicable. The tests are based on turnover or assets, not on your business structure. Restructuring doesn’t lose you access to concessions you currently use.

Your sole trader ABN typically stays with you personally and a new ABN is issued for the company. Clients need notifying of the new entity and ABN for invoicing. Supplier records need updating. Any registrations, licences, or authorities under your personal ABN might need transferring or reapplying under the company. We coordinate these changes to ensure nothing falls through the cracks.

The actual entity setup takes 2-4 weeks typically. Full transition including asset transfers, client notifications, system setup, and changeover can take 2-3 months to complete properly. We usually recommend starting the process at the beginning of a financial year so the new structure operates cleanly from July 1, simplifying tax reporting and avoiding mid-year complications.

Reversing restructures is expensive and creates similar tax implications to the original change. Assets transfer back potentially triggering CGT, setup costs are lost, and you’ve paid higher accounting fees for however long you operated the company. We ensure you understand the commitment before proceeding. If there’s significant uncertainty about your future direction, waiting until your path is clearer is often better than restructuring prematurely.

You’ve heard that restructuring saves tax, but you don’t know if the savings justify the cost and complexity. Company structures have setup costs of $2,000-$5,000, ongoing compliance costs of $3,000-$6,000 annually, and additional complexity in running your affairs. These costs need to be justified by actual tax savings.

Walker Hill models your specific numbers. We calculate what you’re currently paying in tax as a sole trader, what you’d pay through a company structure given your income and how you’d extract profits, what the additional costs are, and what the net benefit would be. You’ll see actual dollar figures, not generic percentages. If restructuring would save you $15,000 annually after all additional costs, it makes sense. If it would only save $3,000, it probably doesn’t.

Revenue alone doesn’t determine readiness. We look at profitability (are you actually making money or just turning over revenue?), stability (is income consistent or wildly variable?), growth plans (are you planning to hire, expand, or bring in partners?), asset position (do you have equipment, property, or intellectual property to protect?), and personal circumstances (what are your other income sources and tax position?).

Walker Hill reviews all these factors together. A sole trader earning $200K consistently with stable business and growth plans might benefit from restructuring. Another earning $200K sporadically with uncertain future might not. We analyse your complete situation, not just apply income thresholds.

Assets like vehicles, equipment, and intellectual property need transferring from your personal name to the new company. This can trigger capital gains tax if assets have increased in value, or can be managed through small business CGT concessions if you qualify. The wrong approach creates unexpected tax bills.

Walker Hill plans asset transfers to minimise tax implications. We identify whether small business concessions apply, advise on timing transfers to manage tax outcomes, and structure everything properly so you don’t discover problems years later when you want to sell or restructure again.

It depends on how much you need to extract from the business versus how much you can leave in. Companies pay 25-30% tax on profits. You then pay personal tax when you take dividends or wages. The overall tax depends on your personal tax rate and how much you leave in the company versus take personally.

Walker Hill models different scenarios. If you need all the profit personally for living expenses, company structures might not save much after accounting for double taxation on dividends. If you can leave significant profit in the company for reinvestment or future use, the initial company tax rate saves money compared to your personal rate. We’ll show you the actual outcomes based on your situation.

Restructuring involves setting up new entities, transferring assets, moving client contracts, updating suppliers and banks, changing invoicing, and managing the handover of operations. Done poorly, it creates confusion, delays invoicing, and disrupts cash flow during the transition.

Walker Hill manages the entire transition process. We handle entity setup, prepare documentation, coordinate with legal advisors on contract transfers, assist with notifying clients and suppliers, set up new accounting systems, and ensure cash flow continues smoothly. The transition happens methodically without disrupting your business operations.

Companies have ASIC annual registration, more complex tax returns, potential audit requirements depending on size, director obligations, company minutes and resolutions, and higher accounting fees for compliance. These obligations are ongoing, not one-off costs at setup.

Walker Hill explains what you’re taking on before you commit. We handle the ongoing compliance, but you need to understand the responsibilities and costs you’re accepting. If the obligations feel overwhelming for the tax benefits achieved, restructuring might not suit your situation or tolerance for complexity.

Yes, but it’s expensive and creates similar issues to the original restructure. Assets need transferring back, CGT might apply, client contracts need changing, and you’ve potentially wasted setup costs and years of higher accounting fees. Restructuring should be a long-term decision, not an experiment.

Walker Hill ensures you understand the commitment before proceeding. We don’t push restructuring if your situation is uncertain or if you’re likely to want to reverse it. Better to stay as a sole trader longer than restructure prematurely and need to restructure back.

If restructuring doesn’t make sense yet but you’re concerned about liability, there are partial solutions. Comprehensive insurance protects against many risks. Transferring personal assets to your spouse’s name (if appropriate) provides some protection. Careful contract management can limit exposure.

Walker Hill advises on asset protection strategies available within sole trader structure. Insurance is the foundation: professional indemnity, public liability, income protection depending on your industry. We also review whether your personal asset ownership exposes you unnecessarily and what changes might provide protection without full restructuring.