Legal Issues to Consider When Starting A Business

There are a variety of legal issues to consider when it comes to starting your business. Everything from your business name to its structure to its operation has legal consequences.

Business Structures

There are several business structures and the first four are widely use in Australia:

• Sole trader – an individual trading on their own
  • Partnership – a number of people or entities running a business together bu t not as a company
  • Company – a legal entity separate from its owners
  • Trust – an entity that holds property or income for the benefit of others
  • Co-operative – member-owned business organisation with at least five members
  • Incorporated association – an entity usually established for recreational, cultural or charitable purposes

Business Licenses

Depending on what type of business you plan to engage in, you may need a variety of licenses or permits. At a minimum, you will need a business license and tax registration.

Fair Trading Law

Australian federal and state laws protect you, your business and your customers from unfair trading practices. These laws, together with industry codes of practice, help your business operate fairly and competitively, and make sure your customers are properly informed and protected. It is against the law for businesses to limit or prevent competition and it is important that businesses understand their rights and obligations at all times.

Employment Law

Employment law in Australia can differ greatly from that of other countries. As such, it is imperative that you seek professional advice to avoid unintentional illegal behaviour.

Employees are generally individuals who perform work, under the direction and control of their employer, on an ongoing basis. In Australia, the federal government’s Fair Work Act 2009 (Cth) covers employees and businesses in each state. An employer has the obligation to comply with these employment legal requirements, such as those created by the National Employment Standards.

If you would like to start a business and find out more about your rights and options, Straits Lawyers are here to help. Simply send us an email at info@straitslawyers.com or give us a call on 8410 9069 to arrange an appointment for an interview.

Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.