Broker accounting series ยท Guide 3
Choosing a structure
for your brokerage.
Sole trader, company, trust and partnership structures differ in tax administration, control, cost, succession and risk. The right discussion begins with the business you are building.
Look beyond one tax rate
Structure follows
commercial reality.
Consider ownership, licensing and aggregator requirements, expected profit, drawings, employees or contractors, asset protection objectives, future partners and eventual succession or sale.
Changing an established structure may trigger tax, duty, legal and operational consequences. Model the transition before transferring agreements, income streams, client records or assets.
Control
Who makes decisions, receives profits and carries ongoing responsibilities?
Compliance
What accounting, tax, corporate, trust and licensing work will the structure require each year?
Future plans
Will you add owners, employ staff, retain profits, sell a book or bring in a successor?
General information only
Review the whole arrangement
before changing it.
Tax and accounting advice may need to be coordinated with legal and credit-licensing advice.