The options are:

Sole trader

This is the simplest and least expensive business structure to set up.

A sole trader is not a separate legal entity.

You are responsible as an individual, for all the actions of the business. You will be liable for any debts incurred.

Partnership

A partnership is defined by the Partnership Act 1892 (NSW). It is “the relationship which exists between persons carrying on a business in common with a view to profit”.

A partnership involves an agreement between two or more parties to have a legally-binding business relationship.

Proprietary limited company

This is a private company. The company name ends with 'Pty Ltd'. It is run by directors and owned by shareholders.

Association

An association structure suits small, non-profit groups.

Examples include interest groups, sporting clubs, industry and hobby bodies.

Cooperative

A cooperative business structure is one where five or more individual members own the business. A cooperative supplies goods and services to members and in some cases, to the general public.

There are over 800 cooperatives in NSW.