Whether you are starting a new business, buying a share of a business, or purchasing a business, as Rowe Bristol Lawyers will advise you, that business can be structured in several ways. It is important to know what these structures are and more importantly, the pros and cons of each of them. In Australia, you will usually have four different business structures to choose from. These are the basic details of each of them:
Sole Trader: Legally and financially, you are the business and are wholly responsible for fulfilling its obligations, including the payment of debts, and taxes. As a sole trader, your business is not a separate legal entity to yourself.
Trust: A trust has members or beneficiaries rather than owners, and the responsibility for running that trust and carrying out the necessary administrative tasks falls upon trustees appointed by those beneficiaries. Trusts are complicated and you most definitely require input from commercial lawyers if setting one up.