Hypothetical question... If you were looking to start a business and it did not make a profit until the second year, how would that initial loss be treated in different structures? Ie, individual, discretionary trust and company structure. Say you make $100, spend $200 on business expenses. Individual and Trust -> Loss offsets other income of individual/beneficiary, if no other income, is the loss kept for the next year/until there is profit? Company -> Loss kept until there is a profit to offset? Is my understanding correct?