Setting up a business in New Zealand is exciting, but it’s also one of those moments where you want to slow down and think things through.
The way you set up your business affects how you run things day-to-day, so it’s worth knowing your options before you jump in.
Your Two Main Options
In New Zealand, most people start out in one of two ways:
1. Sole Trader
This is the simplest setup.
You pretty much just start trading under your own name.
A sole trader setup can be great if:
you’re testing out a side hustle
you’re keeping things small and simple
you want fewer admin steps to get going
It’s quick, it’s easy, and there aren’t many hoops to jump through.
2. Company
A company is a separate legal entity from you.
This means the business is its own “person” in the eyes of the law.
A company can be a good fit if:
you want clearer separation between you and the business
you plan to grow or bring on others
you want something a bit more structured
But it also comes with more rules, legal obligations and reporting you need to stay on top of.
Why It Matters
The setup you choose affects things like:
how you pay yourself
what you’re liable for
your legal responsibilities
how the business can grow
It’s not just about choosing the “best” option, it’s more about choosing what actually suits your situation.
Not Sure Where to Start?
If you’re feeling unsure, you’re not alone.
A quick chat with someone who works with businesses every day can make things much clearer.
We spend our days helping business owners understand what they’re signing up for so they can start strong and feel confident in their setup.
Disclaimer - Our posts are for general info only, not financial advice.
We’re bookkeepers and accountants sharing from our experience working with all sorts of businesses. This is a brief explanation only please get in touch to learn more about Sole Trader and Company setups and which structure would be the right fit for you and your business. Contact us here 🖱
