Setting up a Business

As the start of the lunar new year is just around the corner, if you are planning to start a business, now is the time to think of a suitable type of business structure for your business. Amongst the key decisions you will need make when starting a business is its structure. Your choice of structure will depend on the size and type of business and how you want to run it.

Your business structure can determine your:

• the tax you are liable to pay;
• your potential personal liability;
• how much control you have over the business;
• the licenses you require;
• asset protection; and/or
• costs.

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

You can change your business structure as your business grows or your circumstances change.

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.

Alternatively, you can book an online consultation with us via this link: https://straits-lawyers.square.site/product/online-consultation-/11?cs=true

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.