Small businesses are simply categorised by four main business structures:
- Sole trader: a type of business enterprise or proprietorship which is owned by one person who is liable for the company’s debts and fulfilment of contracts with his/her personal wealth unless incorporated.
- Partnership: an association of two or more partners in a business enterprise, but not as a company.
- Trust: an arrangement by which property is put under the ownership and control of a person (trustee) who bears the responsibility of administering it for the benefit/s of another (beneficiary).
- Company: a legal entity that manufactures or sells products, or provides services as a commercial venture. A corporation.