What type of business structure will you use? Will you be a sole trader, in a partnership, a company or a trust? There are advantages and disadvantages to consider for each. Choosing your business structure is an important decision, so you need to investigate each option carefully.

When making your decision, consider whether your activity is a business, or a hobby. Remember that to be able to claim business deductions you must be carrying on a business. Other factors to consider are the cost of set-up, the taxation implications, the expense of ongoing administration and your personal financial liabilities.

You may want to consult a professional business adviser, accountant or solicitor for advice.