(b). That's wrong. Starting a business as a sole trader is the simplest of all the available alternatives. As long as the business owner is operating the business in their own name, there are no formalities prescribed by the law and there is no special legislation that governs this type of business organisation.

If a small trader is not operating the business under their own name, it will be necessary to register the business name. It may also be useful to obtain an Australian Business Number but this is not essential.

If Edward wishes to start his business in a small way, and with the minimum of complications, with complete control over the business, a sole proprietorship is a good option.