Sole trader or a company? That question is frequently asked by business owners when their business is growing. So, how do you know if your business structure should remain as a sole trader or change to a company, and what does this mean for your legal requirements? It can be difficult to decide between the two various structures, and it’s important to understand the difference in order to discover which suits your business.
For example, with the two different structures, there are differing regulations around taxation, liability, your responsibility and how your assets are protected in the event something should go wrong. Understanding the differences between the two and structuring your business correctly is important, so how can make the correct decision?
Sole Trader/Company Resources & Checklist
The Australian Taxation Office (ATO) provides free resources below which can be helpful in discovering which business structure is right for your requirements.ATO Business Structures Resource
Also, click the button below to access the Business.gov Sole Trader/Company Checklist to find out the key differences.Sole Trader/Company Checklist
The Sole Trader/Company Checklist provided by the ATO & Business.gov could prove useful in deciding whether to setup your business structure as a sole trader or a company, if however you are still unsure, please seek independent professional advice.