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Archive for October, 2010

Business Structure Selection 1. Sole Trader

Nature of structure:

  • Easy to establish
  • No legal separation
  • Limitations: Limited life, access to finance, unlimited liability
  • Governing law – normal business regulation, ie. tax, health & safety, local council, RMA, etc.
  • Control – in the hands of the individual

Other considerations:

  • Sale of undertaking
  • Cessation
  • Tax assessments- IR3 Return, GST, PAYE if any
  • Losses – in taxable situations c/f
  • Contributions
  • Distributions