Your business is a legal structure, therefore it is important that you understand the business structure that you select for your business. The most common types of business structures available in Australia include:
1. Sole Proprietor or Sole Trader
2. Partnerships
3. Companies
4. Trusts
Your choice of most appropriate legal form of organisation for your business will depend upon factors like:
· The size of the business
· The number of people involved
· The type of business
· The cost and difficulty of establishment
· Taxation considerations-maximum economic rewards
· Financial considerations, both present and future
· Superannuation considerations
· Management control and independence
· Acceptability of government interference
· The need for additional skills
· Exposure to risk / liability of individuals
· Your own personal preference
Next week we will discuss about Sole Proprietor or Sole Trader. So stay tuned for next Friday.
