A sole trader structure is simple and cost-effective to set up, but the business owner is personally responsible for debts and liabilities. A company is a separate legal entity, which can offer greater asset protection and credibility, but it also comes with more compliance and reporting obligations.

Yes, a business structure can be changed as your business grows or your circumstances change. Many businesses start as sole traders and later move to a company or trust structure for better tax planning, asset protection, or expansion opportunities.

Your business structure directly affects how income is taxed, what deductions may apply, and what reporting requirements you need to meet. Choosing the right structure can improve tax efficiency and help avoid unnecessary liabilities in the future.