Choosing the right business form
Sole Trader

Choosing the right business form
A tool to support you in analysing your business’ purpose and the type of business that suggests

The big idea

Thinking about the constitutional form and legal vehicle your business takes is closely linked with your purpose and aspirations. Whether you decide on a company limited by guarantee, a community interest company or some other form, your choice will have different implications – issues such as personal accountability, potential liability, and the business’ structure and processes. Choosing an appropriate business form requires you to think carefully about your purpose and intended direction. You should also ensure it is your choice and not something that has been imposed upon you.

Purpose

This tool will not tell you exactly which business form to take. There is now a wide range of options from purely non-profit to profit driven, and you should take legal advice on setting up the right vehicle for you. What this tool will do is help you decide on your main priorities and issues in relation to your future business. Once these are defined, you can seek the necessary guidance on setting up an appropriate legal form. 

The Tool

The tool gives you a quick checklist to help you think through the key issues for you in setting up your business. If you have already thought about your business, it can be done quickly. But you may then need to do further research about company types. It can be done on your own or with someone who knows you well.