Thinking of making the switch to sole trading? Many tradies choose to be sole traders, with the flexibility and autonomy it provides, but it’s far from easy.
Luckily, there are plenty of resources available to help you ensure you’re on the right track or help you decide if sole trading is the path for you.
Starting out
It’s relatively easy to start a business as a sole trader — you don’t need to go through the same legal process as setting up a company.
To become a sole trader, you don’t need to register yourself or your business with a government agency. You only need to inform Inland Revenue (IR) that you have started working for yourself as a sole trader.
The sole trader community is an integral part of the New Zealand economy. Being a sole trader appeals to a wide range of Kiwis, including many tradespeople.
Getting started tasks
Being a sole trader isn’t for everybody. Going it alone means you control your business and get to keep all the profits. However, if you want to sell your business or get investors at some stage, it’s best to have a company structure from the start.
Business structure overview
You get some of the same benefits employees get, for example, paid parental leave. But you will miss out on other things, for example, paid sick leave or bouncing ideas off teammates.
Talk to people in the industry to find out if it’s for you.
