What is an Entity?
An entity is any one of the following: –
A Sole Trader – a person who decides to start a business by trading on his or her own. Typical sole traders include trades people, such as painters and decorators, electricians and repair technicians. Being a sole trader doesn’t stop you from employing people to help you in the business
A Partnership – a business agreement between entities – rather than a business that exists as a separate legal entity – in which all the profits/losses, responsibilities and liabilities are shared according to a deed of partnership contract.
A Company – a business that is a separate legal entity from the people who have a financial interest in the business, who are known as shareholders and are taxed separately from the company on the income they receive from it.
A Trust – another very popular entity in New Zealand is a trust. Trusts are particularly useful for asset protection and estate planning, and so are commonly used for owning private and investment assets rather than for operating businesses.
For a complete overview of structures go to Business.Govt.NZ
Disclaimer: This publication has been carefully prepared, but it has been written in general terms only. The publication should not be relied upon to provide specific information without also obtaining appropriate professional advice after detailed examination of your particular situation.