Are you a sole trader, company, partnership, trust or co-operative?.
You need to decide on the legal structure of your business, because, yes, you’ve guessed it…there are different legal and tax obligations for each.
- As a Sole Trader, you’re the boss. It’s the easiest setup and gives you full control of your business.
- A Company is a separate legal entity. It’s more complex, but it helps protect your personal assets if things go pear-shaped.
- As a Partnership, two or more people share the business and split the profits (or losses).
- A Trust has a Trustee (a person or company) who holds your business for the benefit of others (the beneficiaries) and is responsible for everything relating to the business operations.
- A Co-operative has at least five people who own and run the business together for the benefit of all members.
