The type of business you choose will depend on the structure of your business. These are the options:
- Sole Proprietor – a simple structure, also referred to as a sole trader, suitable where you are the only person in your business, trading as yourself.
- Partnership – is where you are operating the business with between two and twenty partners, with each contributing to the business – the terms of which can be agreed between the partners, whether they be financial or otherwise.
- Company or Pty LTD – where a legal entity is created with a separate liability from he owner/s. This is a popular option because the debts of a company generally belong to the company, and the owners are not at risk of losing their personal assets should the company run into financial trouble.