Reading time: 2 minutes

Are you looking to start your own, or expand your existing jewellery business? If so, you should now consider which business structure best suits your needs. Choosing a business structure can be a challenging and exciting process as each structure presents its own advantages and disadvantages. Before deciding which structure you will use for your jewellery business, it is important that you take the time to research each option, and know the legal consequences for you and your business. Below, we step you through two common business structures you may choose to run your jewellery store through – a sole trader and company.

Sole Trader Advantages

A sole trader is the simplest business structure available and is one person conducting a business in their name. Consequently, she or he has all control and responsibility for the business. It is the preferred business structure for small businesses whose owner wishes to maintain complete control over every aspect.

Sole Trader Disadvantages

Although running your business as a sole trader provides you with complete control over the business, you also assume all of the risks. What this means is that you will be personally liable for any debts the business incurs. Before setting up your jewellery business, it is first a good idea to better understand your personal finances by speaking with your accountant.

Company Advantages

You may decide that you want to limit your personal liability, and choose instead to operate your jewellery store through a company structure. A company is considered an separate legal entity, and as such, directors are not personally liable for any debts it incurs, except in limited circumstances.

Company Disadvantages

A company business structure can be costly to set up and to run, especially when compared to a sole trader. As a result, if you choose to operate your jewellery business in this way, statutory regulations will prevent you from directly accessing profits.

Conclusion

If you are looking to start your own, or expand your already existing jewellery business, you should take think about your business goals and what business structure will best help you achieve them. We have briefly gone through two available options, namely a sole trader and company. However, it is important that you have a thorough understanding of the options to make an informed decision. 

Questions? Get in touch with LegalVision’s Business Structuring experts on 1300 544 755.

Webinars

How to Recover Unpaid Invoices

Thursday 13 May | 11:00 - 11:45am

Online
What do you do if your customers don't pay your invoices? Attend this webinar to learn about how to recover unpaid invoices.
Register Now

Trade Marks 101

Thursday 17 June | 11:00 - 11:45am

Online
Your trade mark is one of the most valuable assets of your business. It is therefore crucial to understand how to protect your trade mark, avoid disputes, and prevent competitors from infringing on your rights.
Register Now

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

The majority of our clients are LVConnect members. By becoming a member, you can stay ahead of legal issues while staying on top of costs. From just $119 per week, get all your contracts sorted, trade marks registered and questions answered by experienced business lawyers.

Learn more about LVConnect

Need Legal Help? Get a Free Fixed-Fee Quote

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • 2020 Excellence in Technology & Innovation – Finalist – Australasian Law Awards 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice – Winner – Australasian Lawyer 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Fastest Growing Law Firm - Financial Times APAC 500 2020 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review 2020 AFR Fast 100 List - Australian Financial Review
  • 2020 Law Firm of the Year Finalist - Australasian Law Awards 2020 Law Firm of the Year Finalist - Australasian Law Awards
  • Most Innovative Law Firm - 2019 Australasian Lawyer 2019 Most Innovative Firm - Australasian Lawyer