In Australia, Sarah and Jane could have chosen to operate their business under the four common business structures: sole trader, partnership, company, or trust. Each of these structures has its own advantages and disadvantages .
As separate business person, Sarah and Jane could have operated as sole traders.
Easy to establish
There is no sharing of profit
The trader has total control of the business
Easy to operate
It is not restrained by stringent legal framework
Low start-up costs
Easy to wind up
Unlimited liability of debts
Limited sources of capital
The trader is tied to the business
The life of the business is tied to the life of the trader