Business Structures for CreativeS: How Pip & Henry Set Up Their Photography Studio
Starting a business with a friend can be exciting and nerve-wracking at the same time. You have to find the balance between chasing your passion, building a successful & thriving business, but also protecting your friendship along the way.
That’s exactly where Pip & Henry found themselves.
Meet Pip & Henry
Pip & Henry are two best friends based in Brisbane who share a passion for photography. After years of refining their skills and working on creative projects together, they decided to take the plunge and officially opened their own photography studio earlier last year.
While they don’t have any employees yet, their business is growing steadily and is earning between $95k-110k annually.
But like many business owners, Pip & Henry realised that passion and their creative talents are just one part of running a successful business together. They found themselves stuck trying to figure out what business structure would work best for them.
Why a partnership made sense for PIP & Henry
In Australia, the most common options for small businesses in Australia are:
Sole Trader
Partnership
Company
Trust
We worked with Pip & Henry to figure out what their goals and priorities were and it was quite clear that preserving their friendship was at the top of the list. Here’s why Partnership was the way to go for them:
Shared responsibility & equal splits
A partnership allows Pip & Henry to share income, expenses and tax obligations equally.
This allows them to run the business together as true equals.
COST TO SET-UP & simplicity
When compared to setting up a Company, setting up a Partnership is generally simpler and more affordable.
This made sense for Pip & Henry as they are still in the early growth stages of their business.
Protecting the Friendship
With clear agreements in place (including how profits are divided and how decisions are made), they’re reducing the risk of misunderstandings that could potentially strain their friendship.
What’s involved in a partnership?
It’s important to understand that even though Partnerships are simpler than alternative structures, there are still legal and tax obligations to be aware of. Here’s what Pip & Henry have to do…
The partnership needs its own abn & tfn
The partnership itself is seen as a separate entity for tax purposes, even if Pip & Henry work together. That means they have to apply for an Australian Business Number (ABN) and Tax File Number (TFN), specific to the Partnership.
Both partners lodge their own individual tax returns
Pip & Henry both need to lodge their own tax return, which will report their share of the partnership’s income and expenses.
GST Registration
If their business income exceeds $75,000 per year (which it already does), they must register for GST. This isn’t a requirement specifically for Partnerships, and is applicable across all businesses in Australia that exceed $75,000 in annual turnover.
Thinking about starting a business with a friend or partner?
Choosing the right structure from Day 1 can save you a tonne of headaches (and money). Whether you’re in Brisbane or anywhere across Australia, we can give you tailored advice on:
Understanding your tax and legal obligations
Protecting your personal assets
Splitting profits fairly
Safeguarding your relationships
At Refresh Advisory, we help business owners get it right from the start. If you think your current structure isn’t working for you, we can help you out too.
Start FY26 with Confidence
Get in touch for tailored Business Structuring advice:
📧 hello@refreshadvisory.com.au