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Your business structure impacts everything—from taxation to liability and future growth. Choosing the right setup can improve tax efficiency, protect your assets, and streamline operations. But as your business evolves, restructuring may become necessary.
And although the Attune team is here to assist with your business structure, we thought it prudent to give you an overview of what you need to know to begin with making the right decisions.
Each business structure has its own benefits and challenges:
Sole Trader
✔️ Simple setup, full control, minimal compliance.
❌ Unlimited personal liability—your assets could be at risk.
Best for: Freelancers, solo entrepreneurs, and small businesses.
Partnership
✔️ Shared responsibility, more resources.
❌ Joint liability—partners are responsible for each other’s debts.
Best for: Small businesses with multiple owners.
Company (Pty Ltd)
✔️ Separate legal entity, limited liability, tax efficiency.
❌ Higher compliance and setup costs.
Best for: Businesses looking to scale and protect personal assets.
Trust
✔️ Asset protection, tax-effective income distribution.
❌ Complex setup and ongoing management.
Best for: Family businesses, investors, or structured income distribution.
Each structure is taxed differently:
• Sole Traders & Partnerships: Income is taxed at individual rates.
• Companies: Pay a flat corporate tax rate (currently 25% for small businesses).
• Trusts: Distribute income to beneficiaries, who are taxed individually.
💡 Example: Restructuring from sole trader to a company can reduce tax liability by leveraging lower corporate tax rates.
• Sole traders and partnerships bear full personal liability for business debts.
• Companies and trusts offer limited liability, protecting personal assets.
If your business is growing, taking on contracts, or employing staff, restructuring may provide better protection and safeguard the future of both your personal and business situation.
Before you decide to change structure, speak with the Attune Advisory team so we can help ensure your restructure fits your goals and unique circumstances.
Your structure should match your business ambitions:
• Scaling up? A company allows for investment and growth.
• Family business? A trust can assist with income distribution.
• Keeping it simple? A sole trader setup has low overheads.
Case Study: Sarah ran a digital marketing business as a sole trader. As her revenue grew, she faced higher tax rates and legal risks. With Attune Advisory’s help, she transitioned to a company structure, reducing her tax burden and securing her assets—allowing for confident growth.
As you can see, choosing the right business structure isn’t just about tax—it’s about protecting your future. Whether you’re starting out or thinking about restructuring, expert advice can save you time, money, and stress, so call the Attune team on on 1300 866 113 or send us an email to book a consultation today!
