ChangeGPS Business Structure Advisor evaluates seven entity types. Individual / Sole Trader is the simplest structure, where the owner and business are legally the same — suitable for low-risk, early-stage sole operators. Company creates a separate legal entity with limited liability and is suitable for most commercial businesses seeking legal separation from their owners. Discretionary Trust offers flexible income distribution across beneficiaries and asset protection — the most common structure for family businesses. Unit Trust provides fixed, proportional entitlements to unit holders and is commonly used for joint ventures or investment properties with multiple investors. Hybrid Unit Trust combines the income flexibility of a discretionary trust with the fixed entitlement features of a unit trust. Managed Partnership of Trusts is a partnership where each partner is a trust entity, suitable for professional partnerships wanting pass-through treatment combined with trust flexibility. Partnership of Discretionary Trusts is used in complex multi-family arrangements where each family group operates through its own discretionary trust within a broader partnership.
What are the seven structure types and when is each used in ChangeGPS Business Structure Advisor?
Explains the seven entity types assessed in Business Structure Advisor and when each structure is typically used.