Squad 2: Changing from a sole trader to a company
This squad developed recommendations to help small business owners understand the effects of changing from a sole trader to a company business structure.
Our initial research found that small business owners think restructuring is relatively simple, as their daily operations mostly stay the same. What they don't fully understand is the change in responsibilities when changing legal structure.
The three core problems we discussed were that small business owners:
- find it difficult to choose the right structure for their situation and understand what it means for their business
- don't understand the duties and responsibilities of being the director of a company
- struggle with the complexity of the process and having to contact various government agencies at different points in the process.
We've worked with various government agencies to implement the fix-it squad’s recommendations to address these problems. These are outlined in the table below.