Business Structure

Business Structure When Comencing a business, it is important to considr the best form of proprietorship or ownership of the business. There are four basic entities which are presently available: -Sole Traders -Partnership -Company -Trading Trust The following points are a brief outline of these four entities. And i will be covering the Company part in this report. Company A business may be conducted by a Company as an entity in its own right and …

…paid by the Company. The liability of the shareholders is limited to the unpaid calls, if any, on their shares in the company and therefore a company structure may be advantageous in a high risk business. But often major creditors will call upon directors to personally guarantee the Company's liabilities. Personal liability of directors and employees may also arise out of an offence under the Corporations Law or negligence in the performance of their duties.