TAX STRUCTURES 101 • STEP 2 OF 4
See It: Real-World Examples
Tell me and I forget. Teach me and I remember. Involve me and I learn.
Benjamin Franklin
Your Learning Journey
Your Learning Journey
This Step Takes: 20 minutes
Interactive story showing real consequences of structure decisions over time.
Why Stories Work
Tax concepts are boring. Stories stick. By following Dave through his journey, you'll see exactly how choices play out, not in theory, but in real dollars and real consequences.
Stories stick. See how choices play out in real dollars.
Choose Your Own Adventure
Make decisions for Dave. Watch how his wealth and tax bills evolve over 10 years based on your choices.
2020
Meet Tom, an IT consultant earning $80k/year as a sole trader. He's ready to grow his business.
Key Insights From Dave's Story
Timing Is Critical
Complexity Pays For Itself
Structure Choices Compound
One Size Never Fits All
The Four Paths Compared
| Path Chosen | 10-Year Tax | Final Wealth | Rating |
|---|---|---|---|
Sole Trader (No Change) Stayed simple, paid the price | $670k | $450k | 😞 Poor |
Company Only Asset protection, but no optimisation | $600k | $720k | 😐 OK |
Company + Trust Good structure, property in wrong name | $450k | $980k | 😊 Good |
Company + Trust + Property in Trust Everything optimised | $370k | $1.2M | 🎉 Excellent |
Same income ($200k/year), same investments. Only the structure changed. $300k difference over 10 years.
- Dave lost $300k by staying sole trader too long. Incorporate at $100k+ income
- Trusts add $2-3k/year in fees but save $15-30k/year in tax (500-1500% ROI)
- Structure choices compound: $30k/year tax savings becomes $490k over 10 years at 8% return
Homework
Which of Dave's paths most resembles your current situation? What would change if you moved to the next level?
Calculate your last year's total income. If over $100k, research company + trust structures this week.
What's Next?
20 minutes