Sole Trader business structures are quite easy and inexpensive to set up.

As a sole trader, you are personally responsible for all of the operations (including debts) of your business.  You also pay tax personally on the profits at your marginal tax rate.

A sole trader can employ other people, however you, the sole-trader cannot be employed by the business.

Why would you choose a Sole Trader?

  • Inexpensive to set up (you just need an ABN)
  • Early stages of the business and you’re not sure if it will be a success (e.g. if you’re starting a business whilst still working as an employee elsewhere)

What else should you consider?

  • Level of risk involved in the business operations
  • Whether you want the ability to add another owner to the business
  • Whether you want to access some government grants (most require an entity to be a company)

What does a Sole Trader structure look like?

Sole Trader Business Structure
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