Entertainment & Arts Law · Business, Structures & Tax
Choosing a structure: sole trader, company or trust.
Sole trader, company or trust? The right structure changes your tax, your liability and how you grow. Here is how the options compare for performing artists.
By Aaron Kernaghan · Brady & Associates Lawyers · 13 September 2026
This article is for informational purposes and general commentary only. It does not constitute legal advice and does not create a solicitor-client relationship.
Most performing artists start as sole traders, but as income and risk grow, a company or trust may suit better. The structure you choose affects how you are taxed, whether you are personally liable for debts, and how easily you can bring in collaborators or investors. There is no single right answer; it depends on your income, your risk, and your goals.
A sole trader is the simplest and cheapest option, but the individual is personally liable for the debts of the business. A company is a separate legal entity that limits liability but adds cost and reporting. A trust can offer flexibility in how income is distributed. For solo performers, the personal services income rules can limit the tax advantages of a company or trust.
Sole trader
As a sole trader you trade under your own name or a registered business name, using your own tax file number and an ABN. It is cheap and simple, and business income is taxed at your personal rates. The main drawback is unlimited personal liability: if the business owes money, your personal assets are exposed. Appropriate insurance matters even more for a sole trader.
Company
A company, usually a proprietary limited company, is a separate legal entity. It can limit the owners' personal liability, is taxed at the company rate, and can present a more established face to producers and venues. The trade-offs are setup and ongoing costs, reporting duties, and directors' legal responsibilities. A company suits artists with higher or riskier income and a plan to grow.
Trust
A discretionary trust can give flexibility in distributing income among beneficiaries, which some artists and family arrangements find useful. Trusts are more complex and costly to run, and require a trustee, often a company. For a solo performer, much of the tax flexibility can be cut down by the personal services income rules described below.
Partnership
When two or more people run a venture together, such as a band or a production partnership, they may be in a partnership. Partners share income and are jointly liable for the partnership's debts. A written agreement is important, because the default partnership rules may not reflect what the members intend.
The personal services income rules
Where income is mainly a reward for an individual's personal skills or efforts, the personal services income rules in the Income Tax Assessment Act 1997 (Cth) can apply. In broad terms, they can attribute income earned through a company or trust back to the individual and limit certain deductions, so that a performer cannot reduce tax simply by routing personal earnings through an entity. Whether the rules bite depends on the facts and on tests administered by the Australian Taxation Office.
ABNs, GST and getting advice
Most working artists need an ABN. Registration for GST is required once annual turnover reaches 75,000 dollars, and is optional below that. Because structure decisions affect tax, liability and superannuation together, this is an area to plan with an accountant and, where liability or contracts are involved, a lawyer, before you lock a structure in.
Frequently asked.
What is the simplest structure for a performer starting out?
A sole trader. It is cheap and simple, and business income is taxed at your personal rates. The trade-off is unlimited personal liability, so insurance is important.
Does a company save tax for a solo performer?
Not always. The personal services income rules can attribute income earned through a company or trust back to the individual, limiting the tax benefit. Whether they apply depends on the facts.
When do I have to register for GST?
When your annual turnover reaches 75,000 dollars. Below that, registration is optional.
What is the benefit of a company?
A company is a separate legal entity that can limit the owners' personal liability and may present a more established profile, at the cost of setup fees, reporting and directors' duties.
Do I need an ABN?
Most working artists do. An ABN lets you invoice properly and deal with GST and tax correctly. It is separate from registering a company.
If you are a performer, producer, venue, or independent practitioner and this raises a question about your own situation, Aaron Kernaghan and the team at Brady & Associates Lawyers can give you tailored guidance. Call 0421 717 019 or contact the firm.
This article is for informational purposes and general commentary only. It does not constitute legal advice and does not create a solicitor-client relationship. It reflects the law in Australia as at 13 September 2026, with a focus on Commonwealth law and New South Wales and ACT practice. The law changes and applies differently to every set of facts. Written by Aaron Kernaghan, Brady & Associates Lawyers.