Just Me Starting Out
I'm testing my idea, keeping it simple, and want minimal setup hassle
See Sole Trader
The foundation decision that shapes your entire business journey. Let's find the right structure for you.
Quick navigation based on your situation
I'm testing my idea, keeping it simple, and want minimal setup hassle
See Sole TraderI want to raise money, hire staff, and protect my personal assets
See CompanyI have significant assets or need flexibility for family income distribution
See TrustSee how the three structures stack up at a glance
| Feature | Sole Trader | Company (Pty Ltd) | Trust |
|---|---|---|---|
| Setup Cost | $0-50 | $500-1,500 | $1,500-3,000 |
| Annual Costs | ~$0 (just tax return) | $300+ (ASIC + accounting) | $1,000+ (accounting) |
| Tax Rate | Personal tax rates (19-45%) | Flat 30% corporate rate | Varies by beneficiary |
| Liability Protection | ✗ Unlimited personal liability | ✓ Limited liability | ✓ Strong asset protection |
| Paperwork Burden | ✓ Minimal (easiest) | Moderate (annual compliance) | ✗ Complex (most work) |
| Ideal For | Solo operators, side hustles, low-risk businesses | Growth businesses, hiring staff, raising funds | Asset protection, tax planning, family businesses |
Everything you need to know about each option
"You and your business are one"
As a sole trader, you and your business are legally one entity. There's no separation between personal and business assets. You report business income on your personal tax return.
"Your business is a separate legal entity"
A company (Pty Ltd) is a separate legal "person" from you. It can own assets, enter contracts, and be sued independently. You become a director and shareholder.
"Flexible entity for asset protection"
A trust is where a "trustee" manages assets for "beneficiaries" (usually family members). Very flexible but complex. Requires professional setup.