Business start-up structure advice & registration
Starting up your own business is an exciting thought, but it’s also a daunting challenge to undertake. The type of business structure you choose to use will have different tax and legal implications. A business structure also determines who makes important decisions like, how profits and losses are shared, etc. The three most popular structures used in business are; Sole Trader, Partnership and a Company.
The differences at a glance
| Sole Trader | Partnership | Company | |
| Simple business structure, with relatively easy record keeping obligations? | Yes | No | No |
| Can be owned & run by one person? | Yes | No | Yes |
| High initial set-up fees? | No ($33) | Yes ($359.90) | Yes (Limited share capital – $444) |
| Can hire staff? | Yes | Yes | Yes |
| Tax benefits? | Only when profits are low. Enjoys tax-free threshold | Yes, especially if partners are in the same family | Yes, but does not enjoy tax-free threshold |
| Relatively easy to attract capital? | No | No | Yes, because of limited liability |
| Relatively easy to operate globally? | No | No | Yes |
| Pay your own super? | Yes | Yes | Yes |
| Collective or personal responsibility for debts/losses | Personal | Collective | Personal if personal guarantee undertaken |
| Relatively easy to close down? | Yes | No | No |
We can help you find the right structure to suit you and your business, along with helping you along the way.