Show Notes
Welcome back to Tradie Pat.In episode 2, Patrick El-Bitar breaks down one of the biggest decisions tradies need to make when starting or growing their business: business structure.Should you operate as a sole trader?Should you set up a company?Do you need a trust?Pat explains the key differences between sole traders, companies and trusts, including asset protection, tax, admin costs, compliance, workers compensation, super, and why the cheapest option today may not be the best option for the business you want to build in the future.He also breaks down the 3 types of tradies in business:The hustlerThe technicianThe businessmanThe hustler is great at getting work.The technician is great on the tools.The businessman is focused on systems, staff, margins and growth.The problem is, most tradies are not naturally great at all three.This episode is about understanding what structure suits your business, what type of tradie you are, and what you may need to improve if you want to build a trade business that actually works.In this episode:Sole trader vs company vs trustAsset protection for tradiesTax differences between structuresCompany tax and personal taxDiv 7A basicsAdmin and accounting costsWorkers compensation and superWhy trusts are not always betterThe hustler, technician and businessmanWhy good tradies do not always build good businessesWhen to hire, outsource or partner upHow to future proof your trade businessWebsitehttps://latitudeaccountants.com.au/This content is general information only and does not constitute financial, legal, tax or business advice. Speak with a qualified adviser about your own circumstances.Chapters00:00 Choosing the right business structure01:11 Sole trader, company or trust?01:26 Asset protection, tax and admin costs02:03 Sole trader explained02:50 Company structure explained03:46 Sole trader vs company tax05:05 Taking money out of a company05:45 Trust structure explained06:40 Which structure should you choose?07:20 Setup and accounting costs11:01 The 3 types of tradies11:11 The hustler12:01 The technician12:39 The businessman13:31 How to work on your weaknesses14:20 Final advice for tradies
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