Making additional contributions into your superannuation is just one method you can use to reduce the tax you pay each year, which can be particularly appealing to higher income earners who consequently see higher proportions of their salaries disappear on tax. However, it’s not just higher income earners who can benefit from this strategy.
As a business owner, it’s critical to have a good understanding of how your business is performing. After all, keeping a close eye on the health of your business is how you’ll determine whether your current strategies are working, or if you need to adopt new ones. Key Performance Indicators (KPIs) are metrics that will help to determine this.
Determining your business structure is one of the first decisions to make as a new business owner. And it’s also one of the most important. Each structure comes with its own set of benefits and liabilities. So, understanding how they will impact you day-to-day is key to building a solid foundation for your new business.
A Partnership business structure is made up of two or more people or entities. Most small business Partnerships are what is termed ‘General Partnership’ – this means that all of the partners are equally responsible for the management of the business, and each has unlimited liability for the debts incurred.
A Trust business structure is where there is an obligation imposed on a person (Trustee) to hold property or assets (such as business assets) for the benefit of others (Beneficiaries). The trustee is legally responsible for the operation of the Trust and you may have a company act in this role.
