Peter is a sole trader which sells second-hand mobile phones with a business name of Allphones. The revenue of the business has increased from $200,000 p.a. in the first year to $3m in the second year. He now approaches you to get your advice in relation to the legal structure of his business. He wants to retain control of his business and is considering setting up a company to further expand his business.

Required:

Advice Peter about the best legal structure for his business. Is sole trader or a company an appropriate business structure in his circumstances?