---
title: The pros and cons of business trusts [infographic]
description: Trusts are a very popular structure for owning and operating businesses, particularly where there are multiple business partners and significant tangible assets associated with the private business, along with the going concern trading business.
image: https://blog.jpabusiness.com.au/hubfs/3.%20Infographics%20and%20cheat%20sheets/Trust.png
---

 17 November 2016

# The pros and cons of business trusts [infographic]

WRITTEN BYJames Price | JPAbusiness

Trusts are a very popular structure for owning and operating businesses, particularly where there are **multiple business partners and significant tangible assets** associated with the private business, along with the going concern trading business.

The popularity of trusts among business owners relates to **benefits associated with asset protection and income distribution**, among other things.

All types of trusts have the same essential structure, with minor variations in their rules (i.e. trust deed) to distinguish the trust and allow it to perform different functions.

The infographic below sets out the essential structure of a trust, along with the key pros and cons of this type of business structure.

[![Business structures - trust](https://blog.jpabusiness.com.au/hs-fs/hubfs/3.%20Infographics%20and%20cheat%20sheets/Trust.png?width=578&name=Trust.png "Business structures - trust")](https://blog.jpabusiness.com.au/hubfs/3.%20Infographics%20and%20cheat%20sheets/Trust.png)

This the final in our Business Structures infographic series. To view the others simply click on the titles below:

- [Sole Trader](https://blog.jpabusiness.com.au/blog/how-to-choose-the-right-business-structure-infographic)
- [Partnership](https://blog.jpabusiness.com.au/blog/why-set-up-a-partnership-infographic)
- [Company](https://blog.jpabusiness.com.au/blog/pros-and-cons-of-a-company-structure-infographic)

If you would like advice regarding how to structure your business entity, [contact the experienced business advisory team](https://landing.jpabusiness.com.au/contactus) at JPAbusiness for a confidential, obligation-free discussion.

DISCLAIMER

*The information contained in this blog is general in nature and should not be taken as personal, professional or taxation advice. You ought to make your own inquiries and seek independent, professional advice before taking action or relying on any information in this blog. **As tax legislation is subject to change, we cannot guarantee the timeliness of the information provided.*

***Last updated November 2019.***

 

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Topics

- [buying a business ](https://blog.jpabusiness.com.au/blog/topic/buying-a-business)
- [business structures ](https://blog.jpabusiness.com.au/blog/topic/business-structures)
- [starting a business ](https://blog.jpabusiness.com.au/blog/topic/starting-a-business)

About James Price | JPAbusiness James Price has over 30 years’ experience in providing strategic, commercial and valuation advice to Australian and international business clients. James’ blogs provide business advice for aspiring and current small to mid-sized business owners, operators and managers.

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