Choosing the right business structure is one of the most important decisions you’ll make when starting a business. In South Africa, the most common business structures are sole proprietorships, partnerships, and companies. Other types of business are the public fompany, personal liability company and non-profit companies. Each comes with its own benefits, risks, and requirements. Let’s break them down in an easy-to-understand way and include some examples to help you decide which one suits your needs.
Sole proprietor
A sole proprietor (or sole trader) is the simplest business structure. It’s essentially when you trade as yourself.
Partnerships
A partnership is when two or more people agree to operate a business together. They share the profits according to their agreement and contribute to the business in some way—this could be money, skills, or resources
Company
A company is a separate legal entity, meaning its debts are distinct from the personal assets of its owners (shareholders)
