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What Business Structure Should a Nutritionist Have?

With Australians increasingly more conscious of healthy eating and wellbeing, there’s never been a better time to start a nutrition business as a nutritionist. Choosing the correct structure for your nutrition business can be a daunting task. However, through achieving an understanding of the many aspects of each business structure available to you, you will be able to make the decision with confidence. You may wish to seek legal advice so that you are confident of all the legal implications these structures entail. Two options available to you as a business owner of a nutrition business are that of a company or a partnership business structure.

Setting up a Company for a Nutrition Business

A company business structure may be best for your nutritionist business as it will allow you to grow your business quickly. Also, by choosing a business structure, you will be able to separate your personal finances from those of your nutritionist business. However, this will come at a cost.

Incorporating your nutritionist business will mean that you will gain the benefit of limited financial liability for your business. This means that you will not be financially liable for business dealings that you enter into when acting as an agent for your nutritionist business. The benefits of this are clear, as you will not have to bear the weight of your personal life against that of the future of your business. But this will mean that you will not have direct access to profits made by your nutritionist business, as a director is an employee of a company. If you are not looking to expand your business rapidly or feel that limited financial liability is not required, then this may not be the business structure for you.

Partnerships for Nutritionists

Another business structure available to your nutritionist business is that of a partnership. This structure will allow you to pool resources with like-minded individuals for a fraction of the cost of other business structures. But it will require complete faith in your business partner/s.

The partnership is essentially two or more people who agree to conduct business together in a written agreement. This means that all partners will be liable for losses equally, and all will take and equal share in the profits. However, it is possible to offset losses against other benefits partners may make, so there is some room to protect partners from losses.

Therefore, the most important consideration you should have when entering into a partnership for your nutritionist business is whether you can trust your partner/s. If the answer is yes, you can; then this could be an excellent structure for you to choose. Although, if you are unsure, it may be better to choose an alternate business structure.

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Key Takeaways

If you are looking to start your own nutritionist business or expand your already existing nutritionist business, you may wish to consider which business structure will work best for you. Our business structuring lawyers can assist you not only set up your business, but also help you grow your business as well as register your intellectual property.

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Adi Snir

Adi Snir

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