SESSION 8. introduction to business structures. sole proprietorships and partnerships.docx

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SESSION 8. INTRODCUTION TO BUSINESS STRUCTURES. SOLE PROPRIETORSHIP ANDPARTNERSHIPSOVERVIEW:-Will introduce you to business structures.-We will investigate the following business structuresoSole ProprietorshipoPartnershipsoCorporations-And consider the law of Agency--What are some factors that should be considered in determining the type of businessstructure?oBusiness Structures (5.15mins)oTaxationoComplexityoCostsoAsset Protection etc.SOLE PROPRIETORSHIP / TRADER-What is a sole trader?
BENEFITS-Easy to establish-May suit small businesses-Relatively cheap to establish-Reduced formalities compared to a company-Autonomy in decision making-Owner retains all the profits rather than distributed between partners or shareholders.DISADVANTAGES-No separation between business and personal assets;-Business income included in owner’s personal income tax return-Owner responsible for all the debts of the business-Owner can be sued individually-Business cannot unless sold operate in perpetuity.THE LAW-Unlike partnership and companies’ sole traders are not governed by a specific piece oflegislation.-A sole trader does however may need to comply with:oGoods and Service Tax and Australian Business Number registrationrequirementsoAustralian Consumer LawoCompetition and Consumer LegislationoSale of Goods and Fair trading legislationoEmployment lawsoWorksafe lawsoIncome tax laws etcPARTNERSHIPS
What is a partnership?

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Business Law, Corporation, Types of business entity, partner, Types of companies

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