EP3 Choosing the right business structure
In this episode, Jess discusses the importance of choosing the right business structure and its impact on various aspects of a business. The main business structures covered are sole trader, partnership, and company. Jess explains the advantages and disadvantages of each structure, including liability protection, tax implications, management and control, credibility and perceived stability, scalability and growth potential. The episode concludes by mentioning other business structures such as trust, cooperative, and association, and encourages listeners to seek professional advice when deciding on the most suitable structure for their business.
Takeaways
- Choosing the right business structure is crucial as it determines liability protection, tax implications, management and control, credibility, scalability, and growth potential.
- The main business structures are sole trader, partnership, and company, each with its own advantages and disadvantages.
- Sole trader structure offers simplicity, control, and flexibility, but comes with unlimited personal liability and limitations on resources.
- Partnership structure allows for shared responsibility, complementary skills, and access to more resources, but also has unlimited personal liability and potential for conflicts.
- Company structure provides limited liability, access to capital, and enhanced credibility, but is complex, subject to more regulations, and may result in double taxation.
- Other business structures such as trust, cooperative, and association exist, but require professional advice due to their complexity.
Chapters
00:00 Introduction and Importance of Choosing the Right Business Structure
01:29 Factors Affected by Business Structure
03:23 Management and Control
03:53 Credibility and Perceived Stability
04:23 Scalability and Growth Potential
04:52 Sole Trader Structure
05:21 Advantages of Sole Trader Structure
06:18 Disadvantages of Sole Trader Structure
10:05 Partnership Structure
10:33 Advantages of Partnership Structure
11:31 Disadvantages of Partnership Structure
17:35 Advantages of Company Structure
19:22 Disadvantages of Company Structure
22:48 Other Business Structures
23:44 Conclusion
