Sole trader, company, trust or partnership — which structure leaves you with the most after tax, and which protects what you’ve built? See all four side by side in 60 seconds.
This free comparison tool runs your expected business profit through Australia’s FY26 tax rules under each of the four most common structures, then scores each one on tax efficiency, asset protection, and ongoing cost.
Business Structure Comparison
See estimated tax, asset protection and cost across all 4 common Australian structures.
Your situation
Three steps, sixty seconds
Enter your situation
Expected business profit, other income, spouse income, turnover, and how much profit you plan to keep in the business.
See all 4 structures
Sole Trader, Partnership, Company, and Discretionary Trust — tax payable, take-home, setup cost, ongoing cost, and asset protection rating, side by side.
Get a recommendation
The best-fit structure is highlighted based on your priorities (tax efficiency and asset protection), with plain-English context for why.
The four common Australian business structures
These are the structures Trinity sets up and advises on every week. Each has trade-offs across tax, protection, control, and cost.
| Structure | How tax works | Asset protection | Best fit |
|---|---|---|---|
| Sole Trader | All profit taxed at your personal marginal rate (up to 47% inc. Medicare). | None — personal assets at risk. | Side hustles, freelancers, low-risk service businesses under $80k profit. |
| Partnership | Profit split between partners, each taxed at their personal marginal rate. | None — joint and several liability. | Husband & wife small businesses where both contribute. |
| Company (Pty Ltd) | Flat 25% (base rate entity) or 30%. Distributed profits attract franking credits. | Strong — separate legal entity. | Profits over $100k, especially if reinvesting; businesses with employees or contracts. |
| Discretionary Trust | Profit distributed to beneficiaries each year, taxed at their marginal rates. | Very strong — assets owned by trustee. | Family businesses where beneficiaries can absorb income at lower brackets. |
Questions we hear a lot
Is this tool actually free? What’s the catch?
Free, no signup, no email capture. We built it because choosing the right structure is one of the most expensive decisions a business owner makes — and most people make it without doing this maths first. If you want a deeper review or help setting up a structure, that’s where Trinity’s paid advice comes in, but you’re under no obligation.
Where does my data go?
Nowhere. The entire tool runs inside your browser. Your numbers are never sent to Trinity, never stored on a server, never analysed. Close the tab and the data is gone.
How accurate are the tax calculations?
The tool uses FY26 individual marginal rates, Medicare Levy, LITO, and the small business company tax rate (25%). It assumes a single owner for company and sole trader scenarios, splits trust income optimally between you and your spouse, and treats the partnership as an equal split. It doesn’t model CGT, payroll tax, FBT, Div 7A loans, or state-based duties. For directional comparison it’s solid; for a final decision, get personal advice.
Why doesn’t the company option always win?
The 25% company rate looks attractive — but if you distribute all profit as dividends, the franking credit system effectively grosses you up to your personal marginal rate. The company advantage only emerges when you’re retaining earnings inside the business or splitting income through dividends across multiple shareholders.
What’s a discretionary trust and why does it score so well?
A discretionary (family) trust holds business assets through a corporate trustee and lets you decide each year who receives the profit — your spouse, adult children, even another company. That flexibility unlocks income splitting and gives strong asset protection. The cost is complexity, annual compliance, and the rule that trust income generally can’t be retained tax-free.
Can I just change structure later if I get it wrong?
Yes, but changing structures triggers Capital Gains Tax events, stamp duty in some states, and a lot of professional fees. Some restructures qualify for the small business restructure rollover (Subdiv 328-G), but not all. It’s much cheaper to get the structure right at the start than to fix it three years in.
I’m a tradie / sole consultant / contractor — do I really need a company?
Not necessarily. The trade-off is: a company costs roughly $1,800 a year more to run than a sole trader (and $1,500 to set up), and only saves tax once you start retaining profit or have income above ~$100k. If you’re earning $60–90k as a sole operator and spending most of what you earn, a sole trader is often the right answer.
