Are you thinking of setting up your own business? If so, have you decided on the business structure which will be ideal for your new firm? The business structure of a company should be the first thing to be decided and confirmed, before you start putting your business plan into action. Your tax liabilities and payments, management of the business operations, legal identity in the market and consequent success depends on the structure you choose for your new entrepreneurial venture or company in Australia.
If you have decided to take the Australian industry by storm, then decide on the best structure for your business.
There are four main types of business structures which you can choose from in Australia, which are,
- Partnership
- Sole trader
- Trust
- Company
Each type has a distinct business structure and style, with linked legal requirements and liabilities which a company has to fulfill, or risk facing a legal action against them in court. It is therefore important that you learn everything about a business structure option before you select it.
Sole Trader
It is when an individual operates and trades his own company. In such a business, the sole owner is wholly responsible legally, for all aspects involving the operations of his business in the market. He has to take care of all the debts and losses of the business, and this responsibility cannot be legally shared with others.
It is a simple and affordable business structure to start off a company in Australia. The sole trader makes all the decisions about the running and the starting of the business but can hire employees to help him out.