Practice Areas

Commercial Law

This very broad area covers may aspects which can be interrelated.

Business Structures

It is important to choose a structure carefully before you start your business to ensure you get the best structure and full benefits from it. It is a great example of where it is essential to get good advice before you act.

There are a myriad of possible business structures. A particular structure can bring significant commercial and taxation benefits as well as asset protection. The optimal business structure for you could be a partnership, trust, company, a sole proprietorship or a combination. Each structure has its advantages and disadvantages.

If you have already started the business using one of the structures and later on wish to change the structure, you will have to consider stamp duty implications, impact of capital gains tax and possible loss of income tax benefits.

The most common forms of business structures are:

  • Sole proprietorship - where a person operates a business in their own name with a business name registered in the relevant State where the business is operating
  • Trusts - where a trustee looks after property for a beneficiary in accordance with the terms of the trust. These include Discretionary trusts (non-fixed trust), Unit trusts (fixed trust) and Hybrid trusts.
  • Partnership - where two or more individuals or trusts set up a business and share the profits or losses of the business in accordance with the partnership agreement
  • Joint Venture - where two or more individuals or trusts/companies wish to operate a business without necessarily forming a company and for various reasons do not wish to form a partnership.
  • A Company - where shareholders or individuals/companies/trusts can set up a business with the protection of limited liability
  • Superannuation Funds - where individuals who have their own superannuation fund with money to invest or they do not wish to own the business in their own names

As each structure has its own advantages and disadvantages finding the right structure for your needs will be affected by your particular circumstances.

The estimate of fees for advice on a Business Structure is $1,250.00.

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