If limited liability is important to you, the sole trader/partnership structures will not provide the protection that a company will. As a sole trader/partnership, your personal assets are at risk to the business creditors.
I bought a company and would like to access the old records, how do I go about this?
Your rights will largely depend on the form of the share sale and purchase agreement. You normally see a contractual right to be provided with business records dating back a particular point in time. Enforcing the right from a practical perspective may require engaging a lawyer such as us to review the contract and correspond… Read more »
How much more expensive is it to maintain a company registration when compared to a soletrader?
Generally speaking, other than the one-off start-up costs of registration (approx $500 – $1,000), not much more. Annual ASIC cost is around $245, tax compliance and financial account preparation won’t cost you much more than what you are already paying for a business tax return as a sole trader, the only thing that changes in… Read more »
If business structure changes from soletrader to company, can the same ABN be used or will a new ABN and ACN be required?
The answer is no, you will need a new ABN. When you incorporate the company you will be provided with an ACN.
What is a partnership / shareholder agreement? Why do I need one?
If you are running a business with others, partnership/shareholder agreements will save you a lot of headaches and tend to deal with: exit scenarios, who is obliged to do what (particularly if you are taking different roles) and what happens when a partner does not contribute, becomes ill, passes way. From experience, dealing with these matters after… Read more »
What should I expect entering into a shopping centre lease?
Generally commercial leases require the tenant to pay all outgoings associated with the property. Advice – read the terms carefully (or engage a lawyer), pushing back on any terms will be difficult but you should at least be completely aware of your obligations prior to entering the lease. Expect that the financial position of the… Read more »
I’m starting a business with a friend / partner, what structure should I use?
I’M STARTING A BUSINESS WITH A FRIEND / PARTNER, WHAT STRUCTURE SHOULD I USE? The ideal structure will turn on a variety of factors including (among others): (a) the personal circumstances of each of you (do you have other income/day-jobs?) (b) forecasts for each arm of the business, will retail be making losses in the… Read more »
I’m setting up a company and the form asks about shares?
The shares relate to shares in your company which, as an example, could be $2 of share capital. You do not need to make this payment to ASIC it simply recognises the amount of shares and capital “contributed” by the members. If you need assistance in establishing a Company we recommend contacting us.
What’s the difference between a trading name and a business name?
In a nutshell a Business Name is the new “trading name” that used to be used. A trading name was a name used by an entity or person to trade under. A trading name is not a registered business name. Trading names were collected prior to 28 May 2012 by the Australian Taxation Office (ATO) and are… Read more »
What is a business name?
A business name is simply a name or title under which a person or entity conducts a business. Unless you fall within an exemption (i.e. you are trading under your personal name or a company name), you must register your business name to trade using a particular name