It Needs to Be Right from the Start
Choosing what type of entity you will use to run your business or buy your investments through is so important - it can impact on many areas such as Capital Gains Tax, Stamp Duty, Succession Plans, Tax Planning and being able to use losses. It has to be a smart choice from the very start as you may not have an opportunity later to correct it.
You need to consider what you are trying to start now, how you expect that will work in the medium term and what you are planning on doing with the business or investment at the finish. There are quite a few variables that need to be considered such as other sources of income, other people or family you may want involved in the business and if you are planning on selling or passing on the business on your retirement from it.
It is definitely not a one size fits all thing so what may be working well for your mate or the neighbor may not be the smartest choice for you. Take some time and look at the options and explore the consequences of those choices with your trusted adviser.