Business Law

Australia offers a range of business structures, each with its respective advantages, disadvantages, and legal considerations. Here is an overview of the most common business structures available to most of our clients.

Sole Trader

• Simplest and most straightforward structure
• Individual ownership with full control over the business
• Personal liability for debts and obligations

Partnership

• Formed by two or more individuals or entities
• Shared management and responsibilities
• Partners are personally liable for business debts
• Different types of partnerships include general, limited, and incorporated limited partnership

Company

• Separate legal entity distinct from its owners (shareholders)
• Limited liability, protecting personal assets
• Complex administrative and reporting requirements

Trust

• Ownership and control are held by trustees on behalf of beneficiaries
• Flexible structure for asset protection and tax planning
• Complex legal and administrative considerations

Limited Liability Company (LLC)

• Hybrid structure combining elements of a company and a partnership
• Limited liability for members
• Flexible management structure

Selecting the appropriate business structure is a critical decision that requires careful consideration. Key factors that guide this decision include, but are not limited to:

• Legal Liability: Assess the level of personal liability you are comfortable with. Sole traders and partnerships have unlimited liability, while companies and trusts offer limited liability protection.
• Tax Implications: Consider the tax implications of each structure. Some structures may offer tax benefits or flexibility that aligns with your business goals.
• Business Complexity: Evaluate the complexity of administrative requirements. Companies have more formal reporting obligations than sole traders or partnerships.
• Ownership and Control: Determine the level of control and ownership you desire. Sole traders and partnerships provide direct control, while companies and trusts may involve a more distributed ownership structure.
• Asset Protection: Consider the protection of personal assets. Limited liability structures like companies and trusts can offer additional protection.
• Future Flexibility: Anticipate the growth and evolution of your business. Some structures may be more flexible in accommodating changes in ownership or business activities.

Whether you are starting a new venture, expanding your operations, or facing legal challenges, we are here to provide strong representation. Contact us today on (03) 5292 3637 to schedule a consultation and begin addressing your commercial and business law needs with confidence.