Sole trader

A sole trader is the simplest form of business structure and is relatively easy and inexpensive to set up.

Key features

If you are looking at starting your business as a sole trader, consider the following key elements. A sole trader business structure:
  • is simple to set up and operate
  • gives you full control of your assets and business decisions
  • requires fewer reporting requirements and is generally a low-cost structure
  • allows you to use your individual tax file number (TFN) to lodge tax returns
  • doesn't require a separate business bank account, although this is recommended to make it easier to keep track of your business income and expenses
  • requires you to keep financial records for at least 5 years
  • has unlimited liability and all your personal assets are at risk if things go wrong
  • doesn’t allow you to split business profits or losses made with family members
  • makes you personally liable to pay tax on all the income derived

Do you worry about getting your GST, BAS and payroll right?

Would you like to:
  • Save time on your record keeping so you have more time to focus on other aspects of your business?
  • Reduce the stress around meeting your GST and payroll reporting obligations?
  • Have reliable data and reports to help you to understand how your business is performing, manage your cash flow, make more informed decisions and improve your business?
I’m Sharon, a registered BAS agent with more than 20 years' experience in the industry.Get in touch to find out how I can support you and your business to stay on top of your numbers to run a successful business.
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