Plenty of people reading this will have thought about leaving their nine-to-five job, and starting their own business. It’s common to view this as a means of escaping the drudgery that so often makes up the work day. And then there is the freedom, and ability to be your own boss, and to do whatever you like. However, after moving beyond this initial stage of optimistic fantasy – it quickly becomes apparent that being your own boss is an awful lot of work. It is also hard to decide whether to start a company, or become a sole trader.
The following discussion outlines some of the primary pros and cons of being a sole trader, or creating the common “Pty Ltd” company.