The type of business entity that you chose for your business will depend on the nature of the business and who is involved.

1.  Sole Trader

If there is just one person to be operating the business the usual choice is as a sole trader.  If you are using your own name there is no formal requirement for registration of a business name.  However, if you wish to use a different name (although based on your name, such as DC Adolphe Legal), you will need to register a business name.

2.  Partnership

If you are going into business with another person or persons it may be that you will trade under a partnership.  It is important in a partnership to have a partnership agreement that clearly shows the rights and obligations of the partners and deals with ending the partnership either by choice or if one of the partners dies.  It is very important to have a partnership agreement completed at the outset of the business venture.

3.  Trust

Another type of entity which may carry on a business is a person or company as trustee for a trust.  Usually these are family trusts used to give benefits to members of the family without losing control of assets.  There are also some advantages in protecting the assets from creditors by using this method.  

4.  Company

A very common type of business entity is the incorporated company.  A company is a separate legal entity from the individual directors, shareholders and other people involved in the business.  A benefit of the company is that as a separate legal entity it can sue and be sued.  This limits the liability of the individuals involved.  However, there are costs involved in forming and administering a company.  The degree of risk of the type of business is an important factor in deciding whether to have a company carry on the business.

With any type of business entity it is important to speak to an accountant before making your choice to determine any tax implications that may arise.