A new online tool to help small business owners quickly and easily choose their business structure has been launched by Small Business Minister Stuart Nash.
“Most businesses in New Zealand are either sole traders, companies, or partnerships. It can sometimes be daunting or confusing to decide which structure works best for your business,” Mr Nash says.
“New Zealand business structures have different legal and financial obligations which can affect the ability of a business to evolve or grow. It’s important for businesses get it right the first time.
“We are committed to helping New Zealand small businesses succeed, and that means ensuring they know where to get support from the very beginning.
“The online tool, developed by business.govt.nz, asks small business owners three quick questions. The questions help determine whether a sole trader, partnership or company structure is likely to be more suited to their business.
“The new tool, Choose Business Structure, takes an all-inclusive view of the various obligations and considerations businesses will face, such as tax, ACC, financial statements, and indemnity insurance. It was developed in collaboration with the Companies Office, New Zealand Business Number (NZBN), Inland Revenue, ACC and the private sector.
“It also offers practical tips, comparison tables and suggests when a business owner should talk with experts. It gathers information in one place so that small business owners can quickly and easily make decisions with confidence. If you’re already in business, it’s also a good way to check that you’re operating under the right structure.
“There are of course other structures such as trusts, unlimited liability companies, and co-operatives. I encourage business owners to check the new tool and explore other resources available from MBIE,” Mr Nash says.
Choose Business Structure is part of the new suite of tools on business.govt.nz designed to help businesses, with guidance personalised to their individual needs. The tool follows the launch of a re-vamped ONECheck in May, which is now being searched almost 2,000 times a day.