Trust vs Company: What’s the Difference?
Both trusts and companies are separate legal entities and can operate a business with their own ABN.
Trusts are often used for investments or business structures that distribute profits to beneficiaries at year-end, which can provide tax flexibility.
Companies are more structured, with income paid to directors through wages or dividends. While both lodge their own tax returns, the key difference is how profits are taxed at the individual level.
