Are you planning to start your new business on your own but you do not have in-debt knowledge about running a business? Perhaps, you need to start a sole proprietorship form of business as it is the simplest form of company which is used to describe a person working for the owner’s interest without having been any formal procedure to be incorporated as limited or unlimited company.
Secondly, sole proprietorship can be set up easily and commenced immediately – no formal procedure is required to start the operation, which can often commence instantly. You also have the full control which means you can decide the way in which the business can be conducted. You also have the authority to restructure and dissolve the company whenever it suits.
However, sole proprietorship contains greater and personal risk rather than a limited liability company. As a sole trader the owner of the company is responsible for all the aspect of the business. For a sole trade company it is not so easy to attract outside investors or partners which holds back the growth of the business.
One of the biggest advantages of setting up a sole trader is that it can be changed easily. A sole trader business can be converted to limited company easily.
Read this article from Vitoria government’s business website to learn more about sole proprietorship: http://www.business.vic.gov.au/setting-up-a-business/business-structure/sole-trader