Sally-Anne is considering starting a business and is not sure what type of structure to use. She estimates that the annual turnover for the 2020 tax year will be $525,000 and the (taxable) net profit will be $183,000. Both Sally-Anne and her husband have private health insurance.

Calculate (showing workings) the tax she would have to pay if she sets up the business as:

a. A sole trader (no other income) 

b. A partnership 50/50 with her husband (neither earn any other income) 

c. A company 

d. Advise her on which would be the best structure based on total tax payable only. 

e. Describe 3 distinctive features of a partnership.

f. Describe 3 distinctive features of a company.

g. Given the current volatility in the economic climate, Sally-Anne is concerned about what would happen if her business collapsed. Explain her legal liability with each structure listed above and advise which structure would give her the best protection for her personal assets.