setting up a business as a sole trader structure
Business Basics, Managing Teams, Start Up / New to Business

Is a Sole Trader Business Structure right for you?

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.

You 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

What other business structures are there?


Our Services

To learn more about Lemonade Beach Accounting, Tax & Business Advisory Services, please follow the links below.



Recent Posts

Why Your Small Business Should Use Swell: A Cashflow Forecasting Tool

In the world of small business, keeping up with the latest data trends and maintaining a healthy cash flow can be quite demanding. This is where Lemonade Beach’s Cashflow Forecasting program, “Swell” steps in – a real time financial tracking and management tool that serves as your financial consultant and advisor.

Three Swell Levels to Transform Your Business: Snapper, Bells, and Mavericks

In this blog post, we delve into the three levels of our Swell Cashflow Forecasting tool: Snapper, Bells, and Mavericks. Each one is designed to address the specific needs of businesses at different phases of their journey.

Cashflow Forecasting Made Simple: Ocean Analogy

Imagine your business’s finances as a vast and dynamic ocean, each wave representing the ebb and flow of your cashflow. In this analogy, cashflow forecasting becomes your navigation tool, helping you smoothly sail through the financial waters.

‘Tis the season to talk about Christmas Party Tax Rules

Have you ever wondered how to navigate the Fringe Benefits Tax when planning your business’ Christmas party? Well, fret not! We’ve got you covered with all the details on how to keep the party going without breaking the Christmas budget.