The main options.
WHAT EXISTS
Business name registration, for a sole proprietorship or partnership A private limited company Incorporated trustees, for non-profits Other structures for specific purposes
BUSINESS NAME REGISTRATION
Simpler and cheaper to register and maintain.
The business is not separate from you legally.
You are personally responsible for its debts and obligations.
A LIMITED COMPANY
A separate legal entity.
Generally limits personal liability, subject to conditions.
More costly to establish and more onerous to maintain.
WHAT DRIVES THE CHOICE
Liability exposure Who you deal with Whether you need investment Tax considerations Cost and administration
WHAT LARGER CUSTOMERS FREQUENTLY REQUIRE
A limited company.
WHAT TO CONSIDER
Where you expect to be in three years.
Changing structure later is possible and takes effort.
WHAT TO DO
Take advice from an accountant before deciding.
One conversation, and it affects everything afterwards.
