Friday, May 20, 2011

What is your business' legal structure? Which One Would Be The Right One For You?

Your business is a legal structure, therefore it is important that you understand the business structure that you select for your business. The most common types of business structures available in Australia include:

1.   Sole Proprietor or Sole Trader
2.   Partnerships
3.   Companies
4.   Trusts

Your choice of most appropriate legal form of organisation for your business will depend upon factors like:

·    The size of the business
·    The number of people involved
·    The type of business
·    The cost and difficulty of establishment
·    Taxation considerations-maximum economic rewards
·    Financial considerations, both present and future
·    Superannuation considerations
·    Management control and independence
·    Acceptability of government interference
·    The need for additional skills
·    Exposure to risk / liability of individuals
·    Your own personal preference

Next week we will  discuss about Sole Proprietor or Sole Trader. So stay tuned for next Friday.

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