Mary is the owner of a very successful business selling women's shoes. Mary's business is expanding rapidly and she wants to update her business structure from that of sole trader to a more appropriate structure. She seeks the advice of her accountant who tells her that she has a number of options, all of which have advantages and disadvantages. What would be your recommendation to Mary and why? What factors would influence your advice?
The main issue in the present scenario is which form of business is better sole trader,partnership or company. Here we will discuss the positive and negative aspects of all these three and which form of business will be most suitable for Mary.
Legally a business can be done in many ways and each of these business structures has some positive and negative aspects. Mary is a sole trader which the easiest from of setting up a business as it is cost effective and there are not much legal obligations to be fulfilled. Here we will discuss the different forms of legal business structures apart from Sole trader as Mary’s business is expanding so she wants to change the structure of her business therefore below we will discuss the business structures like1(QUEENSLAND GOVERNMENT, 2014):