FOR YOUR BUSINESS CHOOSING THE RIGHT STRUCTURE

The most common business structures are:

1. SOLE TRADER A sole trader is the simplest business structure, where one person owns and operates the business. This structure is best suited for small businesses with low-risk operations, and the owner is responsible for all debts and liabilities of the business.

2. PARTNERSHIP A partnership is a business structure where two or more people share ownership of the business. Each partner is responsible for their share of the business’ profits and losses, and personal liability is shared between partners.

3. COMPANY A company is a separate legal entity from its owners, and it can have multiple shareholders. This structure offers the most personal liability protection, but it also involves more legal requirements, such as annual reporting and compliance with company laws.

A common question we are asked when clients are starting a new business or even after operating for some time, is what is the best business structure for my new business, or is my current business structure the most suitable for my business position?

One of our Client Managers, Tamara Flemming explains, “There are several different business structures to choose from when starting a new business. Each structure has its own advantages and

4. TRUST A trust is a business structure where a trustee holds property or assets on behalf of beneficiaries. This structure is best suited for businesses that involve holding assets or property, and it can provide tax benefits to the beneficiaries.

5. NOT FOR PROFIT ORGANISATION A not for profit organisation is a tax-exempt entity that exists for charitable, educational, religious, or other noncommercial purposes. Not For Profits are governed by a board of directors, and any profits are reinvested back into the organisation.