Having the appropriate structure for your business from the beginning is crucial. The structure you use for your business has wide ramifications, such as legal risks, protecting your assets, taxation obligations and liabilities to which you are exposed
The structures commonly used in Australia include a sole trader, partnership, company and trust. Each structure has advantages and disadvantages. For example, a sole trader is simple to set up and is relatively easier to maintain and requires low costs both in terms of setting up and ongoing costs. There are risks associated with a sole trader such as exposing your personal assets in the event of a business failure.
When deciding on the appropriate structure, you should consider factors such as the business’ requirements and short term and long term goals, the costs involved in setting up and maintaining the structure, tax minimisation, your personal liability and the level of exposure of your assets in the event of business failure.
It is imperative that you have the right business structure in place appropriate for your commercial objectives and needs and that it is correctly documented. We can draft documents including key company documents such as shareholders agreements and company constitutions, partnership agreements and documents in connection with setting up a trust.