Should I go it alone with my business?
If you have a business (or you want to set one up), one of the most important things you need to decide is your business structure. You have four basic options:
1) going it alone as a sole trader,
2) going into partnership with one or more people,
4) setting up a trust.
Sole traders and partnerships are the most common business structures for small businesses in Australia. This week, we’ll look at the pros and cons of being a sole trader.
The pros of being a sole trader
The major advantages of going it alone as a sole trader are:
being entitled to all the profits your business makes.
having full control over your business and all the decision-making.
being able to employ staff to help you if you need it.
it being a simple and inexpensive structure to set up.
using your individual tax file number to lodge your tax returns.
having less reporting requirements than there are with business structures like companies and trusts.
The cons of being a sole trader
The major disadvantages of the sole trader structure are:
being legally liable for any business debts that you may incur.
difficulty in taking time off from your business.
potential difficulty in raising capital.
At Scorpion Bookkeeping, we can help you with any bookkeeping support services that you may need, no matter what type of business structure you have. We currently have clients with all types of business structures in a diverse range of industries in South Australia, Victoria and New South Wales.
We can also help you to implement Xero bookkeeping software to help you. We are a Xero-certified partner.
Contact us today to find out how we can help your business!