Establishing or transitioning to an appropriate business structure

There are many reasons for establishing a farm business with a particular trading structure, some of these include:

• inherited entity from the previous generation (owners);
• the number of people involved;
• the business scale and the costs associated with running a particular entity;
• asset protection being more or less important;
• future succession; and
• taxation.

Key triggers that often prompt a change to business structures include:

• farm business growth;
• a need to better manage taxation liabilities;
• the purchase or acquisition of assets;
• farm succession; and
• death or loss of capacity of a farm stakeholder.

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GRDC Project Codes ORM00015, ORM00017

Region: West

Farm business management fact sheet: Establishing or transitioning to an appropriate business structure (PDF 0.3 mb)