There are a range of business structures available in Australia that can be utilised effectively to suit your particular commercial needs. However, not every structure will provide your particular enterprise with the flexibility and efficiency you need for ongoing success. Depending on your choice of structure, there can substantially different legal and taxation consequences for your business, personal assets, and control over the day to day affairs and management of your business.

Partnerships can be relatively simple and informal structures, and are subject to a lower degree of regulation in comparison to companies and trusts. They have the same taxation benefits as a sole proprietorship, but also allow a certain degree of income splitting. For those engaged in business who wish to collaborate jointly with other individuals or organisations, or to pool together different skills or investment resources, a partnership can be an effective business structure.

However there are also downsides, such as a limited ability to protect personal assets, and the potential to be held personally liable for the debts of other partners.

Before you make a decision on business structure, you should ensure that you have taken all relevant considerations into account, and have a solid understanding of the consequences that flow from each decision in the establishment and ongoing management of a new business.

This Legal Guide on Partnership Law will guide you through some of the main considerations to take into account before engaging a lawyer who will assist you in progressing your business planning. Before making important decisions it is advisable to obtain legal advice specific to your situation. LegalEagle’s™ free directory profiles all lawyers in Australia. You can use it to Find a Lawyer near you.

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Warning: Information provided through LegalEagle™ is for general guidance. It is not legal advice. Laws and procedures referred to may change and differ between states, territories and nationally. There may also be important exceptions or qualifications. Only a lawyer providing formal legal advice can assess your particular circumstances to determine how the law will apply.