When commencing a business venture, it is necessary to consider
the most appropriate type of business structure to put in place.
Different business structures have different benefits and
disadvantages. This article looks at the sole trader business
structure - how to set up as one and the pros and cons of this
structure.
Key Features
A sole trader business structure is where the business and the
owner are one and the same. A sole trader is the sole owner of a
business, has all of the control of the business and is entitled to
all of the profits. There is no separate legal entity, other than
the individual owner.
Setting up as a Sole Trader
A sole trader can trade under his or her own personal name or a
business name. If a business name is to be used, then it must be
registered with the Australian Securities Investment
Commission.
