When starting a business, one of the most important decisions you’ll make is choosing the right business structure. There are four main business structures to choose from, including sole trader, partnership, company, and trust. Each has its own benefits and drawbacks, depending on your specific circumstances.
Choosing the right business structure is important because it can affect many aspects of your business, such as the amount of tax you pay, how much control you have over the business, and how much personal liability you have for the business debts.
For example, if you operate as a sole trader, you are personally responsible for all debts and obligations of the business, which means your personal assets are at risk if the business runs into financial trouble. On the other hand, if you operate as a company, the company is a separate legal entity, which means your personal assets are generally protected from business liabilities.
Geelong Legal can help you navigate the different business structures and advise you on the best option for your circumstances. Our commercial lawyers can also assist with setting up the structure, registering for tax, and drafting agreements between business partners or shareholders.
Getting the right business structure in place is crucial for the long-term success of your business. With the right structure, you can minimise your risk and maximise your opportunities for growth and profitability.