Common reasons for changing structures

There are a number of reasons you may choose to restructure your business. It could be due to business growth, taking on a partner, moving into new product lines or expanding your business overseas. You may decide to change the business structure, or to internally restructure the sections of your business, to improve the overall running of your business and meet your business and financial goals.

Common reasons for a business restructure

  • Change in management - You may be taking on a business partner, so you decide to change from a sole trader to a partnership structure.
  • Change in ownership - If you buy an existing business, you may decide to change the business structure to meet your goals for the business.
  • Financial reasons - You may be restructuring to meet financial goals and objectives, such as improving cash flow or profitability of the business.
  • Operational reasons - You may be reorganising your internal functions, such as sales and marketing, to improve the way your business operates.
  • Business growth - Your business may have expanded overseas or you're expanding the product functions of the business and you need to change your structure to accommodate this growth.
  • Economic downturn or downsizing - You may want to downsize or simplify your business structure, e.g. moving from a company to sole trader.

Each business structure has different legal and compliance obligations, so make sure your understand the differences before changing your business structure.

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