If you are considering starting a bricklaying business, it is critical that you choose a business structure that works best for your business. It can be a challenge choosing the right structure, as the future success of your business could well depend on the choice you make now. However, by having a thorough understanding of the financial and legal implications of each business structure, you can make an informed decision about which one is best for your business. After coming to some sort of decision about which structure will be best for your business, the advice of a legal professional will be invaluable. It will also provide you with a thorough understanding of how Australian business laws will affect the business structures you wish to choose.
Should I choose a sole trader business structure?
If you are looking to start your own bricklaying business, you might consider adopting a sole trader business structure. It is the most traditional of business structures and involves the owner becoming the sole trader. It gives you total control over your business, but also means that your personal finances and your business finances will be indistinguishable in the eyes of the law.
There are many benefits of becoming a sole trader that range from financial to personal. Primarily, becoming a sole trader is by far and away the cheapest business structure to create, and if you choose to trade under your own name, you do not even need to register your business name. This means that you can enter the market as soon as possible, and gain valuable time in establishing your business and brand. Another advantage of choosing a sole trader structure for your bricklaying business is that your business will remain completely attached to you for its entire existence. So no matter how much your business grows and prospers, you will always be in complete control.
It should be noted that there are also some disadvantages related to choosing a sole trader business structure for your bricklaying business. The main problem is the fact that your finances will all be rolled up into one. You may be personally liable for all financial decisions made in the course of running your business. As a result, you will be forced to wear two hats each time you make a decision, your business hat, and your personal hat. For some business owners this is not a problem in the slightest, for others, it is crippling. If this disadvantage is too much for you, perhaps you should consider a company business structure.
Should I choose a company business structure?
A company business structure will provide a sound basis for your bricklaying business to prosper and expand, without the fear of incurring personal financial liability. The primary benefit of a company business structure is that the finances of the business are separate from your personal finances. However, to allow for this financial protection, the costs of creating and running a company are higher than those of other business structures. You will also be subject to a vast array of statutory rules relating to how your company is run.
Today, the company business structure is the most attractive structure of all, primarily because of the financial protection it provides to business owners. However, in choosing whether you want your business to become a company, you must consider your aspirations. For a small business, the cost of running a company can be ruinous. However, for a large business looking to expand, the financial protection it provides can allow you to take calculated risks you might otherwise avoid.
Therefore, it can be said that all the advantages and disadvantages associated with each business structure are relative, as they depend entirely upon the situation of the business owner. If you would like to see a complete list of all the business structures available to your bricklaying business, please click here. Finally, it must be noted that you should seek the advice of a legal professional at some point during the process, as it will assist you in making the most informed decision possible. If you have any further questions relating to choosing the right business structure for your bricklaying business, please call Legal Vision for a fixed-fee quote.