You have to decide on what structure you want for your business. A Micro Business is one which employs less than five people. In Australia 88% of small businesses are Micro Businesses, with 62% of them running a business from or at home.
A great number of small businesses are:
- owner operated (one person owns and runs the business)
- partnerships (small family groups, or close friends)
- run by women, youth and people who were formerly in other employment
- home based.
What business structure you choose will be based on a number of factors such as:
- Do you want to be the only boss and make all the decisions?
- Do you need to have a partner to share the workload and investment (and profit)?
- How do you want to pay tax on profits made?
(eg. you may choose to pay tax on every dollar earned via the structure of a company, or take advantage of the current tax free threshold of $18,200 as a sole trader in Australia)