ABSTRACT
Entrepreneur's don't need a degree in business studies to run a successful business, but they do need to know some basic economics. The decision as to which format the business adopts upon setup is dependent upon whether a number of people are involved in the business. If they are planning to run the business on their own and employ anyone they need assistance from, then the sole trader format is for entrepreneur. The sole trader approach is flexible, and arrangements can be made to minimize the tax paid and to maximize the proprietor's pension/retirement plans. Entrepreneur will need to speak to tax advisers in their location as to the options available. For those businesses where more than one person is involved, and the limited company option is deemed to be too complex or expensive, there is the option of partnership. It is unlikely that a business will generate sufficient income to cover the business expenditure from day one.
