Business Structure - Sole Proprietor

Choosing a business structure when starting up a business is an important element of the setup phase.

Business structure is important as it can impact on taxation, liability of owners, succession, ownership issues and disposal of your business.

Of the four principle business structures, Sole Proprietorship is the most common form of business ownership.

Main features of Sole Proprietorship include:
  • simple to setup
  • low cost to establish
  • complete control
  • minimal government regulation
  • full entitlement to profits
  • little disclosure of financial information
  • private assets exposured to liability
  • restricted to small one person business operations
The ATO's Personal Services Income (PSI) regulations can impact on labour only type business operations. Advice should be obtained from a registered tax agent or practicing accountant.

For a FREE fact sheet ==> Sole Proprietor Explained

For a summary of the four types of business structures ==> Business Structures Explained

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