Legal Structure Of A Business

At CKL Lawyers we have been advising clients on the best possible legal structures for their situation for over 35 years. Our Business Lawyers have a wealth of knowledge and experience in Commercial Law.

What types of financial structures are the best forms of business ownership?

At CKL Lawyers we advise on what form of business ownership best suits your business or family setting.

Our business lawyers can advise you, and liaise with your Accountant, to give you the best tax advice and risk management advice.

Legal Structures

What are the types of business entities you can choose from when setting up the legal structure of a business?

  • Company
  • Unit Trust
  • Discretionary Trust
  • Partnerships and Joint Ventures
  • Superannuation Fund
  • Franchising model

A regular review of your company or trust structure is essential

These are some of the key factors that will determine if you are using the best legal structure.

  • Land Tax
  • Income Tax
  • Stamp Duty
  • CGT – Capital Gains Tax
  • Risk Management

Regularly reviewing your structure with our Commercial Lawyers can alleviate problems in the future.

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Legal Structures Of A Business FAQs

 

Q. Why use a Discretionary Trust or a Unit Trusts for the legal Structure of a business?

Trusts can be used in a variety of ways to distribute income to business partners and/or family members. Our experienced Business Lawyers can advise you which type of trust is best for your needs.

Q. Are Partnerships the best type of legal structure for your Business?

There are many issues related to partnerships that you need to take into account before entering into a partnership agreement.

  1. A Partnership is not a separate legal entity, compared to a company, which is.
  2. Partners are liable for the debts of the partnership (this can differ depending on whether it is a general partnership or a limited partnership).
  3. Partners must lodge individual tax returns. Partners are taxed at their appropriate tax rates depending on whether they are individuals, companies or trusts.
  4. Usually a Partnership can be for between 2 – 20 entities that commence a business together.
  5. Decision making can be dependent on whether the partners are individuals, trusts or companies, and may require major decisions to be unanimous or an agreement by a certain majority.
  6. Capital contributions can depend on whether each partner will contribute equally or whether one party may be investing money whereas the other partner will provide required skills or labour.
  7. Distributions/Salaries – how will the profits be shared between the partners?
  8. Death/Disability – what happens if one of the partners dies? Does the partnership agreement provide for succession?
  9. Deeds of Accession provides for what happens when new partners join the partnership.
  10. Dissolution of the partnership – what happens when you want to end the partnership.

Contact us if you are considering setting up a Partnership, or if you have concerns about an existing Partnership.

Q. What is Succession planning?

It is planning for the future if you intend to sell your business or transfer your business to another family member in the future.

Q. How can I grow my business?

If the business is growing, you may want to think about opening more stores/outlets using a franchising vehicle. See our section under Franchising for more information.

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