how would a sole trader expand and what is the likely legal stauts it would turn into?

Question

i.e would a sole trader go into a partnership or limited company when trying to expand

Answer 1

You have several options for expansion.

As a sole trader you have all the liability for any losses your business has. For example, if your sued for $10,000,000 they can take that out of your house, and future income.

A partnership is the same, but now you are responsible for what your partner does as well.

For very little money and hassle you can set up a limited liability company. There are some situations where a partnership is better than a company, and your accountant can tell you more.

Now, if you want to expand your business there are many ways to do this. You can go into business with other people. But they don't even have to be part of your company, they can be simply under contract. So you can have a network of 100s of peoeple you can all on to do work, but still be a sole trader.

The more complicated approach is to employ peope. Which works best if you are a company.

The best model of business will depend on the type of business that you have and the nature of your expansion.

If you are going to expand your business and you don't have a good accountant, you should go and get one. An accountant will tell you how to pay the least tax and what structure best suits your company. The best thing is that your accountants cost is tax deductable.

Answer 2

Probably get a swimming pool in my backyard.. Arizona heat is no fun. Either that, or move up north where it's still hot, but not 112 like it is now.