Business structures and employemnt notes from lecture recodring.

Business structures and employemnt notes from lecture recodring.

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Unformatted text preview: Business structures • As the business progresses, the business structure have the flexibility to change to suit circumstances • We want to get the right in the first instance • Consider the regulations for each business structure, the location of the business in relation to the state, local and commonwealth laws. Publicly disclose business information and the costs involved and personal liability. Fundraising- some structure it is easier to gain money from equity or debt means. In addition taxation is also important. Two types of taxation are individuals and companies in Australia. Taxation rates: 30% for companies whilst for the individuals, there are marginal taxation that are involved for each group of individual earnings. If taxation loss is resulted, may roll it forward or offset any other income generated from other means. • Sole trader- run by an individual, no separate entity, register for an ABN, no specific act is applied. Register name that is not individual’s name requires the individual to register under Business names act under each state. Very economical but personal liability is a major disadvantage. Debts of the business fall under the sole trader. Funding can be a problem as banks lending money is a difficulty i.e. require asset put- down and also hard to bring new people. There is no perpetual progression as individual dies the business dies. Taxation is taxed under the individual income. • Unincorporated association-group of people comes together for a non-profit causation. There are no restrictions to where operate and also no compliance costs, funds rose from members, profits to remaining org and taxed according to the company tax. Also personal liability issues. • However, to reduce personal liability, plan to be incorporated under the respective state laws. Generally limited to states. Funds can be borrowed from charitable funds since separate legal entity. Taxed similar to the company tax • Cooperative- members for own benefits based on solidarity, equality. Regulated by the cooperative act under respective state laws. Cheaper and less requirements compared to the corporations act. Also separate entity. Limited liability where members are not liable for business debts. Taxation at company rate. • Partnerships- group of people such as accounting firms. It is not a separate legal entity. Covered by the partnership act under respective states. Definition: carrying on a business in common (both partners have right to govern rights of the business) with a view of profit (excludes non-profit orgs). Silent partners-no management participation. Section 2 of the act set out some rules to determine the existence of a participation....
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This note was uploaded on 03/25/2012 for the course ECON 2322 taught by Professor Kevin during the Three '12 term at University of New South Wales.

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Business structures and employemnt notes from lecture recodring.

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