The business structure that you opt for can have some significant implications on the operations, ongoing costs, tax implications, asset creation and safeguarding, the kind of dealings, expansion possibilities and more. This is why it is very important to invest enough attention and time in deciding whether your business should be established as a sole tradership, a partnership, a company or a trust. At AGC Advisory, we have the experience in this arena to advice you on the kind of structure you should choose in line with your business aspirations.
A company has the legal rights that you do as an individual and the same liabilities as well, but as an owner you can limit your liability for company debts. Your company needs to be registered with the ASIC and there are many legal requirements outlined under the Corporations Act to comply with, as well.
A sole tradership is a simple business structure and a very inexpensive one to establish.
However, you have complete personal liability for all the debts of the business. In a partnership, you and your partners share the income as well as the debts and obligations of the business. Some kinds of partnerships need to be registered with the ASIC.
In a trust, the responsibility of certain assets is handed over to a trustee who manages these for the benefit of specified parties or beneficiaries. An expensive process, setting up a trust also requires that certain formalities are complied with. In addition, there are administrative tasks that need to be taken care of year on year. In a business that is being operated a trust, the trustee is liable for the operations. For businesses where the trustee is another business, ASIC registration is mandatory.
The legal requirements may vary dramatically depending on the kind of structure you opt for. To ensure that you have complete knowledge of all the mandatory requirements and to help you fulfil these with ease, our team offers complete support right from the business planning stage. Talk to us today to know more about our business advisory services in this respect.