Whether you're just renting out your granny flat or leasing out a commercial investment property, you're a landlord. You'll receive the benefit of rental income, but will also have the responsibility to maintain your property.
It is common for employment contracts to have restraint of trade clauses. These prevent you from doing certain things while you’re working for your employer, or even after your employment has ended. While you may have agreed to these clauses when you signed your employment contract, that doesn’t mean that they’re always able to be enforced.
A guarantor is a person who is legally responsible for paying back a loan if the borrower fails to make repayments. It is not uncommon for friends or family members to ask someone to be a guarantor under their loan application. For example, a close friend of yours might want a loan from a bank to open her new business and ask you to be a guarantor under the loan.
Running your own business is rewarding but it can be hard work, so it’s understandable if you’re tempted to take on a partner or incorporate. If you’re wondering whether it’s worth maintaining the status quo consider these benefits to being a sole trader.