Understand the differences between a sole trader and a company business structure when considering the reasons why you are changing structures and what you want to achieve with your new structure.
Do you know what it means to run a business as a sole trader? Find out what taxes you pay, the registrations you need and your responsibilities if you employ staff under a sole trader structure.
For sole traders, understanding how much PSI you earn is important as it can affect what tax deductions you can claim. Find out what personal services income means for sole traders.
Each business structure as different legal, tax and record keeping responsibilities. Understand the difference between a sole trader and a company before deciding on your business structure.
A table on the tax differences between a sole trader and a company.
This checklist will guide you through some of the key differences between starting and operating as a sole trader or a company. It covers points that people commonly misunderstand, which can affect how you run your business.
Last Updated: 23 May 2016
Super for sole-traders...
What could I be personally liable for as a sole trader vs. a company director?
Whether you are a sole trader, partnership or company business structure, you can employ people under a number of categories. Some categories offer more flexibility for workers, while others provide more security for the business.
Set-up steps and costs for a sole trader and a company.