#03 Business Structure
One of the first things you need to think about when setting up your business is which business structure is right for you. This is also relevant when your business is undergoing change, such as more employees, higher volume of goods and larger profits, to name a few.
There are several options for your business structure, and in this episode I share some key areas for you to think about when determining the right one for your unique situation. I touch on operating as a sole trader, a corporate entity and partnerships, and i discuss some of the distinguishing features of each. I share some insight on points to consider such as the long term vision of your business, your personal liability, and the flexibility you wish to have moving forward.
Although changing your business structure down the track is doable, by getting it right at the start you’ll be doing yourself a great favour and avoid some potential headaches in the future.
Topics discussed and where to find them
[1:00]: When business grows, things change.
[1:30]: The several options for a business structure - sole trader, partnership, company or trust.
[2:30]: Changing your business structure down the track is doable but there are a lot of complications involved.
[3:45]: Key things to think about - Long term vision, personal liability and asset protection, tax, insurance and flexibility.
[5:30]: The flexibility and benefits of operating as a corporate entity.
[6:00]: Distinguishing between a sole trader and a corporate entity.
[7:00]: The definition of a partnership and the importance on being clear about what you want to achieve so you can work out which structure suits you best.