Doing business in Australia: Business structures

Key Points:

There are five different business structures in Australia, each with their advantages and disadvantages.

A person may carry on business in Australia as a sole trader, a partnership, a joint venture, a trust or a company.

Sole trader / sole proprietorship

An individual may carry on a business on his or her own behalf as a sole trader, also commonly called a sole proprietorship. A sole trader is relatively simple to establish; there is no separate legal entity other than the individual. A sole trader is therefore personally liable for all obligations incurred in the course of the business and income from the business is taxed at the personal rate of the sole trader.