Leasing a Printer as a Sole Trader, Company or Trust

Sole trader

The business and the individual are the same legal person, so the individual is assessed and the individual signs.

There is no separate entity to guarantee, so the question of a personal guarantee rarely arises: you are already the party.

Deductions generally flow into the individual’s own return, where the equipment is used for business purposes.

Company

The company is a separate legal person, so the company is assessed and the company enters the agreement.

Where the company has a short trading history, directors are more likely to be asked for a personal guarantee to support it.

Deductions generally sit with the company rather than the individuals behind it.

Trust

A trust is not itself a legal person, so the agreement is normally entered by the trustee, often a company acting in that capacity.

Both the trustee and the trust have to be established for the paperwork, which is why trust applications take longer than others.

Getting the exact name right matters. An application in the trust’s business name rather than the trustee acting as trustee is a frequent cause of a rewrite.

Have these ready whichever applies

• The exact legal entity name as registered, not the trading name.
• The Australian Business Number for that entity.
• If a trust is involved, the trustee name and the capacity it acts in.
• Who is authorised to sign, and whether more than one signature is needed.
• This page is general information about how these arrangements are commonly treated in Australia. It is not tax advice. Your structure, your finance arrangement and the year all change the answer, so confirm your own position with your accountant.