Lee has a successful computer shop in Sydney.His customer base in increasing because he manages the business well and his customers appreciate his service, skill and knowledge

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about computers.His income is rising, as is his tax and he wishes to expand the business.Lee owes his own apartment and a luxury BMW.One of his customers, a student at Top Education, remembers his lecturer saying something like it is possible to incorporate a company as a sole trader but the student is unsure if he heard correctly (he had his headphones on at the time!).The student offers this suggestion to Lee.

You are an accountant.Lee comes to your office for advice.Lee wants to know if this is true and, if so, what it would mean if he did incorporate the business.He also wants to know what are the cost and benefits of doing so.

Advise Lee with reference to the law on companies.