A sole trader has no protection in this sense if they are conducting business under a certain name/brand. When starting a small business, one of the first things to be decided is the legal structure used for the business. What is IR35 and who does it apply to? Sole traders vs. limited company. The two most common ownership structures are âsole tradersâ and âlimited liability companiesâ. From the legal implications to your reporting requirements, ongoing costs and how youâll be taxed, here are some key things you should know before you decide whether to start a business as a sole trader or as a company. IR35 was introduced in the year 2000 to prevent disguised employment through intermediary entities such as personal service companies (PSCs), which allowed workers to inappropriately avoid paying taxes as employees. United Kingdom. Proof of identity: New Zealand drivers license or a passport; The application process starts by logging into your RealMe account, followed by setting up a user account. Sole Trader & CIS vs Limited Company. When your income as a sole trader reaches NZ$60,000, you are also required to register for, collect and pay GST. Sole traders may obtain a unique New Zealand Business Number (NZBN), which any business in New Zealand can use to identify the business in commercial relationships and dealing with government. The other popular structure for small businesses is sole trader. It provides an easy way to identify different businesses, and to share and update business information. A sole trader is the simplest type of business structure defined in UK law. Whether you are starting a new business or purchasing an existing one, one of the most important decisions you make will be how to structure your business.While there are several different business structures available, most owners will choose between structuring their business as a company or sole trader. It can either be a sole trader or limited company or a partnership. Setting up as a sole trader is the most popular legal structure in the UK, with approximately 3.5 million sole proprietorships in 2020. Most private limited companies in the UK are small businesses. Unlike a limited company, a sole trader is not seen as separate to the company. Sole Trader Vs Limited Liability Company - Consideration Of Liability Issues. New Zealand companies and public sector agencies are automatically given an NZBN. Finance A company opens further doors for raising capital/finance. This sole trader vs company cheat sheet explains the major differences between two of the most common business structures. When you register as a sole trader, youâll need to decide on your business name. As long as a Trust or Company is in the business of investing in property, it is accepted that searching for properties is an expense of the business of the Trust or Company. And, while this doesnât require you to become a limited liability company, Walton says he believes reaching the GST threshold is often a good time to consider a switch. The New Zealand Business Number (NZBN) is a unique identifier available to every business in New Zealand. Sole Trader Home > Sole Trader & CIS vs Limited Company. When setting up and operating a business careful thought needs to be given to the ownership structure and potential liability. There is a different treatment for sole traders, where the searching for properties is treated as part of the cost of acquiring the property. 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