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The issue of how to choose a right business structure is always the most concern in economic activities.

For Australian business, there are four typical business structures namely sole trader, partnership, trust and company. Basically, each structure is different in characteristics, weakness and strongs. Therefore, chossing the business structure often depends on business demand or pupose and needs to be considered in some major points such as tax application, operating costs, protection of assets. Sole trader A sole trader or sole proprietorship is the simplest one among normal business structures. This is a type of business that is carried by an individual as the owner (Introduction to business: A textbook for the first course in business on the collegiate level. 1967. Raymond Eugene Glos v Harold Atherton Baker). In this structure, the owner is the only one who receive all the profits and must take completely legal responsibilities for all losses, debts and activities in businees while other people work as the employees. The tax application is based on income tax of owner. The owner must register a business name through a notional business name registration system administered by the Australian Securities and Investments Commission (ASIC). Conducting the business structure as a sole trader may go hand in hand with advantages and disadvantages. For the positive side, the establishment of the business is extremely easy with inexpensive start-up cost and not much comprehensive paperwork. Because of an individual business, the owner will receive all profits made by the business. In case the business is sold, the owner can keep all the after-tax gains.The operation of a sole trader is such an easiest business. The owner is full of power to control all apsects of business and easilly make any decisions without argument or neogiations. This helps the business make changes to adapt quickly with the fluctuations in market place. ( Noticebly, a sole trader is least affected by government rules and regulations because there are not many specific policies applied. (,+industry+and+trade/Starting+ and+managing+a+business/Starting+a+business/Business+structures/S ole+trader) In the contrast side, it is likely to be hard for just an individual to conduct and maintain the business while the market is always competitive. The financial and operating capacity is limitted and can not always be a strong foundation to ensure the long-term business or in case there is a economic crisis. Only the owner takes all responsibilities for all aspects of business without sharing and therefore the business is easily put under the pressures of debts and losses or risks (Choosing the right business structure oc=/content/00182084.htm&page=3&H3) In case the business goes into debts or bankruptcy, the owner can lose private properties. In addtition, the business might be terminated because of owners death or illness (Family

Business Sourcebook, Third Edition [Hardcover] Craig E. Aronoff (Editor), John L. Ward (Editor), Joseph H. Astrachan (Editor)). Company