Sole Trader
A sole trader is an individual running a business. It is the simplest and cheapest business structure.If you operate your business as a sole trader, you are the only owner and you control and manage the business.
You are legally responsible for all aspects of the business. Debts and losses can't be shared with other individuals.
You can employ workers in your business, but you can’t employ yourself.
As a sole trader, you are responsible for paying your worker's super. You're also responsible for your own super and may choose to pay it into a fund for yourself to help save for your retirement.
Partnership
A partnership is a group or association of people who carry on a business and distribute income or losses between themselves. For example, if you and a friend or family member decide to set up a business together, you might operate it as a partnership.
A partnership is relatively inexpensive to set up and operate. The partners share income, losses and control of the business.
Partners are responsible for their own superannuation arrangements. However, the partnership is required to pay superannuation for its employees.
Trust
A trustee is legally responsible for the operation of the trust. The trustee can be an individual or a company. Profits from the trust go to beneficiaries.
If you have a trust structure and the income the trust receives is mostly for your personal efforts, skills or expertise, you need to work out if the personal services income (PSI) rules apply. If the PSI rules apply, the income will be treated as your individual income for tax purposes. This will also affect the deductions you can claim.