Business Structure: Chapter 1 - Why Every Business Needs a Business Structure Review
- Future Accounting
- Jul 13
- 6 min read
Written by: Melissa Cunliffe (CA)
"The strongest businesses aren't built on luck. They're built on good decisions, made consistently over time."
Imagine spending the next twenty years building a successful business.
You work long hours.
You employ staff.
You purchase equipment.
You buy a commercial property.
You accumulate investments.
Your business becomes your family's largest asset.
Then someone asks you one simple question.
"Why do you own everything in this structure?"
How would you answer?
For many business owners, the honest answer is:
"Because that's what my accountant recommended when I started."
There is absolutely nothing wrong with that.
In fact, it was probably the right advice at the time.
The problem isn't how the business started.
The problem is that many businesses never revisit that decision.
Twenty years later, the business has changed dramatically.
The structure hasn't.
That is where opportunities are lost.
Your structure should grow with your business
Think about the first vehicle you ever owned.
It probably suited your needs perfectly.
Maybe it was inexpensive.
Reliable.
Easy to maintain.
Then life changed.
You started a family.
Perhaps you needed something larger.
Maybe you began towing equipment.
Maybe safety became more important than purchase price.
The vehicle that once suited your life no longer met your needs.
Business structures are no different.
The structure that works brilliantly for a start-up may no longer be the most appropriate structure for a mature business employing twenty staff and owning millions of dollars in assets.
That doesn't mean the original decision was wrong.
It simply means your business has evolved.
Your structure should evolve with it.
Business owners often ask the wrong question
One of the first questions many people ask is:
"What's the best business structure?"
I understand why.
It seems like a logical place to begin.
But after many years advising business owners, I've found there is a much better question.
Instead ask:
"What am I trying to achieve?"
Because the answer to that question changes everything.
Are you trying to:
protect your family home?
build a business you can eventually sell?
purchase commercial property?
create long-term family wealth?
involve your children in the business?
prepare for retirement?
reduce unnecessary risk?
provide flexibility for future generations?
Each objective may influence the way your business should be structured.
That's why there is no single "best" structure.
There is only the structure that best supports your goals.
The cost of getting it wrong
Many people assume that choosing the wrong structure simply means paying a little more tax.
Sometimes that's true.
But in reality, the consequences can extend much further.
The wrong structure can affect:
how easily you obtain finance
whether valuable assets are exposed to business risks
how profits are distributed
your ability to bring family members into the business
succession planning
estate planning
the eventual sale of the business
long-term wealth creation.
Sometimes the biggest cost isn't measured in dollars.
It's measured in opportunities that no longer exist because the conversation happened too late.
From Melissa's Desk
One of the most common comments I hear is:
"I wish we'd had this conversation before we bought the property."
Unfortunately, once an asset has been purchased, changing ownership can trigger Capital Gains Tax, stamp duty, refinancing costs and unnecessary complexity.
One conversation before signing the contract can often create planning opportunities that simply aren't available afterwards.
That's why I always encourage clients to involve their adviser early.
Not because every decision requires a restructure.
But because every important decision deserves the opportunity to be considered properly.
Good business owners review everything else
Think about everything you already review regularly.
You service your vehicle.
You review your insurance.
You update your software.
You replace worn-out equipment.
You review your financial performance.
You prepare annual budgets.
You meet with your banker.
You complete tax planning.
So why wouldn't you review the legal structure that owns everything you've worked so hard to build?
A Business Structure Review isn't about changing things for the sake of change.
It's about making sure your business structure continues supporting where you're heading—not just where you've been.
A structure should support your future
Throughout this guide you'll notice something.
I don't spend much time talking about finding the "perfect" structure.
That's because perfect doesn't exist.
Instead, I want you to think about finding the right structure for the next stage of your journey.
Every business follows a different path.
Some remain small lifestyle businesses.
Others become family enterprises spanning generations.
Some will eventually be sold.
Others will continue long after the original owner has retired.
Your structure should reflect that journey.
Not someone else's.
A simple example
Let's compare two business owners.
Ben has just started a landscaping business.
He works alone.
He owns a ute, a trailer and a small amount of equipment.
His focus is winning clients and generating consistent income.
His structural needs are relatively straightforward.
Now consider Rachel.
Rachel operates a manufacturing business employing twenty-five staff.
She owns commercial premises.
The business has retained profits.
Her children are beginning to show an interest in joining the business.
Succession planning has become part of the conversation.
Would it make sense for Ben and Rachel to operate under exactly the same structure?
Probably not.
Neither structure is "better."
Each simply reflects the stage of the business.
That is why business structures should be reviewed as businesses evolve.
The question every business owner should ask
Instead of asking:
"Is my current structure working?"
Ask:
"Would I choose this structure again if I were starting my business today, knowing everything I know now?"
It's one of the most powerful questions you'll ever ask.
Because it encourages you to look forward rather than backwards.
Preserve • Protect • Prosper
Everything you'll read throughout this guide comes back to three simple principles.
Preserve
Preserve your wealth, your flexibility and the opportunities available to future generations.
Protect
Protect your family, your business and the assets you've worked so hard to build.
Prosper
Build a structure that doesn't simply support today's success—but tomorrow's ambitions as well.
Whenever you're faced with an important business decision, come back to these three questions.
They'll rarely lead you in the wrong direction.
Key Takeaways
There is no universally "best" business structure.
Your structure should evolve as your business evolves.
The biggest opportunities are often created before major decisions are made.
Annual Business Structure Reviews are just as important as annual tax planning.
Good structures don't happen by accident—they are reviewed, refined and improved over time.
Ask Yourself
If I were starting my business today, would I choose the same structure?
Has my business changed significantly since my structure was established?
Am I making future decisions based on today's business—or yesterday's?
Common Mistake
Believing that choosing a business structure is a once-in-a-lifetime decision.
The most successful businesses don't simply choose a structure.
They continually review it to ensure it keeps pace with their growth, their family and the changing legislative environment.
Planning Opportunity
If you haven't reviewed your business structure in the past three years—or if you've experienced significant growth, purchased major assets or begun thinking about succession—now is the ideal time to schedule a Business Structure Review.
One conversation today could create opportunities that simply won't exist in the future.
3 P's Action Step
Before you turn the page, write down the answer to this question:
"Where do I want my business to be in ten years?"
Keep that answer in mind as you read the rest of this guide.
Because the right business structure isn't about where your business is today.
It's about where you're trying to take it.
Book a Business Structure Review
Your business has evolved—has your structure kept pace?
A simple conversation today could help identify opportunities to better Preserve, Protect and Prosper for the future.
Book a meeting with our team to discuss whether your current structure is still the right fit for your goals, your assets and your next stage of growth.
Disclaimer
This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.
Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder
Liability limited by a scheme approved under professional standards legislation.
