Melony Davids recently left her job at a large insurance company to start her own insurance advisory broker. To start the business, Melony plans to invest $50,00 of her own savings and has arranged for an investor to invest another $25,000. Melony has recruited one junior broker to join her business and has hired a receptionist. Given the nature of the business, Melony expects that in the first two years the business will only record a profit of $75,000 and will subsequently grow by around 20% per year.

Type of business structure:Sole Traders, Partnerships,Trusts, Franchises, Companies.

Advise Melony what the best type of business structure would be for her business and explain why that structure would be most suitable. Ensure that you identify and take into account all relevant factors.