So you’ve decided not to be a sole trader. How about a partnership?
This business structure permits income splitting (e.g. between spouses). Though fees are involved, a partnership is relatively easy to set up.
Yet it’s not a separate legal entity – so your personal assets remain at risk. You and your partner/s are jointly and severally liable for each other’s actions.
Which brings me to my main point: choosing the right partner. Be very careful who your partner is. Do you really know them?
Before I moved to electronic document storage, I had a box for each client’s files. And the stories those boxes could tell of business partners not getting on!
First, there was the honeymoon. Then, reality set in. Finally, one partner wanted to go left and the other right.
To save yourself this pain, check with your advisors before you commit!