Your friend, Brian, works as an Electrician working on several Commercial Buildings. He has recently finished his apprenticeship and is starting to get paying customers. He has contacted you as he knows you have been undertaking some accounting studies as part of your qualifications as he has decided to start his own Electrical Business. He wants some advice regarding his options for the structure of his new business venture, which are either a sole trader or a company. He anticipates that initially he will work alone but in the future, he may grow the business and have employees.

1. What three factors would you consider as important in deciding which business structure to advise, i.e. whether to operate as a sole trader or a company? (3 marks) (100 words max).

2. Explain three advantages and three disadvantages of each of these business structures (sole trader and a company)? .

3. Which one of the two of the structures would you advise and why?