Sole Trader vs Company vs Family Trust: Which Structure Costs You the Most?

Business structure is one of the biggest decisions a small business owner can make, but most people do not realise how much it affects risk, tax, family finances and long term growth. In this episode, Jacob and Cat sit down on The Account Rant to unpack the difference between operating as a sole trader, company or family trust, and why the right structure depends on your goals, risk profile, assets and plans for the future. They discuss why a sole trader structure can be simple and cheap to start, but may expose business owners to unlimited liability and higher personal tax rates as they grow. Jacob and Cat also break down when a company structure starts to make more sense, especially for builders, tradies, businesses with employees, and anyone trying to scale beyond just working for themselves. The conversation then moves into family trusts, why they are often misunderstood, and why trusts are not just for the wealthy. They explain how everyday business owners, tradies, restaurants and family businesses may use trust structures legally, and why proposed tax changes could place more pressure on small business owners. They also discuss the Bendel case, bucket companies, CGT changes, small business CGT concessions, and the broader frustration many business owners are feeling about the direction of tax policy in Australia. This is a practical and honest conversation about business structures, tax planning, family trusts, asset protection, small business growth and why getting the right advice early matters. Hosts: Jacob and Catarina Need an accountant or just want to chat about your business? GET A FREE CONSULTATION FOR ALL ABN HOLDERS 👉 https://forms.zohopublic.com/john205/... CHAPTERS 0:00 Choosing the right business structure 0:30 What are your long term business goals? 1:02 Sole trader, company or trust? 1:42 Why sole traders are simple but risky 2:30 Unlimited liability and personal asset risk 3:20 Why some businesses should start as a company 4:10 What a company structure actually means 4:55 Limited liability and the corporate tax rate 5:45 Why you cannot always just leave profit in a company 6:35 Family trusts explained 7:25 Why trusts are not just for rich people 8:20 How family businesses use trusts 9:20 The frustration with proposed trust tax changes 10:20 Why small business owners feel targeted 11:30 Public sector jobs, private sector pressure and the economy 12:45 The Bendel case explained 14:30 Why the ATO position was challenged 16:10 Bucket companies and trust distributions 17:40 Why the federal government may have changed the rules 18:45 CGT changes and why business owners are worried 20:20 Why confidence matters in the economy 22:00 Small business CGT concessions explained 23:30 The $2 million turnover and $6 million asset tests The Account Rant is a show where accountants vent on different business, tax, money and leadership topics. It is an honest and informal conversation intended for discussion and entertainment only. For business enquiries [email protected] Follow Latitude Accountants TikTok   / latitudeaccountants   Instagram   / latitudeaccountants   Website https://latitudeaccountants.com.au/ Disclaimer: This video is for general information and educational purposes only and does not constitute accounting, tax, legal, financial or business advice. Please seek professional advice for your own circumstances.