Berryman Partners can assist you in setting up the legal structure of your business, tailored to your situation and commercial goals.
Whether you’re looking to start a small business or purchase an established one, the first thing you need to consider is what type of business structure is appropriate for you and your commercial goals. At Berryman Partners, our commercial lawyers will provide advice for your unique situation.
The most important factors for business to consider include asset protection, finance availability, tax liability and compliance costs. Failure to consider these factors can negatively affect the operation of your business and expose you to unnecessary tax liability. At Berryman Partners, we want to make the process of setting up a business structure as simple and easy as possible. If you have any questions or concerns, Berryman Partners is here to help.
We can ensure you understand the complexities of each business structure so that you can use these to maximise your profits.
The main types of business structures include:
- Sole trader
This is the simplest form of business structure and the easiest and cheapest to establish. The sole trader has total control of the business and is personally liable for business tax and debt. The main legal requirement is the registration of a business name.
A legal agreement known as a Partnership Agreement, whereby two or more people choose to divide control of the business between them. They may choose to trade under a separate name. The partners share personal liability for business tax and debt.
In a franchising business structure, one business operates under another business’ established brand. The franchisee has the advantage of well-known products and a streamlined marketing plan and the franchisor has the advantage of efficiently expanding their business. You can read more about this on our Franchising page.
A company is a separate legal entity, meaning that the directors are not personally liable to pay the company’s taxes and are not liable for the company’s debts. Setting up a company can be complicated. There are strict legal requirements and it is an expensive process, which requires you to register with ASIC.
A trust is a relationship where a trustee (either a person or a company) holds property on behalf of any number of beneficiaries. There are many different types of trusts and a trust can be an effective way of protecting assets and reducing tax liability. Trusts are complex to set up and have strict regulatory requirements.