Sole Trading
9. Ongoing Compliance
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 23 Sep 2015
- Sole traders are not subject to specific structure-related regulation in the way that trusts and companies are. The same responsibilities and liabilities exist for businesses operated by a sole trader as for you personally as an individual.
- Depending on the specific industry in which you operate you will almost always need to consider the effect of:
- regulations;
- rules;
- codes;
- standards; and
- licenses.
- These will usually be governed by the state government or local council in your business location.
- For example if you operate a trade business you will be required to obtain and maintain a relevant qualification for example as a:
- plumber;
- carpenter;
- brick layer; or
- registered builder.
- You must be aware of the regulations that apply to your specific industry. In different trades for example there will be regulations and codes which govern:
- how certain work must be undertaken; and
- standards to which the work must be performed.
- For example an electrician must comply with the standards for safe electrical wiring which is usually regulated by the Electrical Safety body in your particular state.
- Operations in certain other industries such as hospitality or food production may require specific licenses.
- The level and complexity of the regulation associated with your particular industry can impact on your choice of business structure in some of the following ways:
- it may sway you towards a business structure which provides better protection from personal liability;
- it will determine the costs associated with establishing and maintaining your business;
- it may affect decisions around the type of employees you wish to attract; and
- it can draw your attention towards any relevant qualifications that will make it easier for you to conduct your business in the way you want to.
- The Australian Business Licence and Information Service (ABLIS) is an excellent source of information regarding industry specific regulation of businesses. It is recommended that you investigate the particular rules applying to your enterprise before deciding on a business structure.
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