So you have a great idea for a business, but the most fundamental decision that you can make before you do anything further is to determine how the business will be set up.
While you may be eager to get underway creating their empire, if the business is not structured correctly right from the start it could lead to all sorts of problems and complications down the track. There are many different ways you can set up a business and all of them have the pros and cons, but some of the most common are:
- Proprietary Limited Business
- Sole Director/Shareholder
Before you select a business structure we highly recommend that you do the following:
- speak with an accountant who understands the tax implications and pros and cons of each structure;
- speak to a lawyer who understands the pros and cons of each structure from a potential dispute view point.
Consider where you hope your business will be in 10 to 15 years from now, not just what you need right now when determining your business structure because it is in the future when your business structure will either set you up to succeed or to fail.