The tool has been developed by business.govt.nz. It asks small business owners three questions, which help determine whether a sole trader, partnership or company structure is likely to be more suited to their business.
Small Business Minister Stuart Nash says New Zealand business structures have different legal and financial obligations which can affect the ability of a business to evolve or grow. He says it’s important for businesses get it right the first time.
“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," he says.
“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."
Mr Nash notes that there are other structures available, such as trusts, unlimited liability companies and co-operatives.