There are several ways to structure your business in New Zealand, and each have different legal and financial obligations. Most businesses are set up as sole traders, companies, or partnerships.
As a Sole Trader you are 100% reliable for your business’s liabilities and debts. In a Partnership, two or more people or entities join together to share the profits and liabilities of a business. A Company is a separate legal entity and provides shareholders with limited liability from any business debts to the value of their shares in the company.
Each option offers varying degrees of control and responsibility. The structure you choose can impact your ability to grow or sell the business, so it’s important to get it right.
Our business lawyers are experts in their field. We can advise you on the pros and cons of each business structure, and we can work together with your other advisors – your accountant and banker for example - to advise the best option for your needs.
If you are changing an existing business structure, it is also time to talk to The Law Shop. We can provide expert advice, and can prepare the agreements for new and existing business partners. Good advice can ensure the right structure for tax, creator protection, and business saleability.