Peter is a sole trader who sells second-hand cars with a business name of Peters car dealers. The revenue of the business has increased from $500,000 p.a. in the first year to $10m 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:

Advise Peter about the best legal structure for his business. Is the sole trader or a proprietary company an appropriate business structure in his circumstances? Explain it in a briefly way