When starting your own business there are a number of considerations that you should take into account. Engaging a lawyer early in the process of establishing your business can help you make informed decisions for your particular needs both now and in the future.

A lawyer with experience in dealing with businesses can help you assess whether operating as a sole trader gives you the ongoing flexibility and opportunities for growth that a business needs.

For example they can help you choose the right business structure for your endeavor by considering:

• what size your business will be both in terms of capital accumulation and annual income;
• what is the potential for growth and whether your structure provides for such growth into the future;
• whether you want to employ people and if so whether they will be employees or independent contractors;
• how complex the rules and regulations specific to your industry are and how they will affect your ongoing costs;
• how risky your business is and whether it is likely that a debt or other liability will arise from your business operations; and
• what your current taxation situation as an individual is and whether you wish to income split profits of the business or be able to offset any losses against your personal income.

Generally speaking a good business structure will:

• be flexible and able to allow for growth and expansion but also allow for slower periods of growth;
• provide sufficient protection for both business and personal assets;
• allow for tax minimisation where appropriate; and
• provide you with the desired level of personal control over day-to-day operations.

A trusted and skilled advisor who can provide prompt solutions to each of your particular concerns can help you avoid costly mistakes and delays. For a sole trader this can be particularly important especially given the potentially unlimited personal liability should things go wrong.

Having someone guide you through the process can also save you substantial time and money.