Business Setup
Company Setup
1. Download and fill in Setup: Application form
2. Send application form to admin@westtaxsolutions.com.au
Sole Traders
This business structure is the most basic and commonly adopted, where a single individual manages all income and costs associated with the business. In a sole trader setup, there exists no legal distinction between the proprietor and the business itself. Consequently, the proprietor assumes full liability for all business obligations, leaving their personal assets vulnerable to creditors and potential losses in case of family disputes.
Partnership
A partnership is a business arrangement where two or more individuals collaborate to run a business, jointly sharing both profits and losses according to an agreed-upon proportion. In a partnership structure, the business and its partners are not distinct legal entities. As a result, partners bear personal responsibility for the business's debts, and each partner may be liable for debts accrued by other partners on behalf of the partnership.
Company
A company is a business entity owned by shareholders but managed by directors. It's common, particularly in small businesses, for directors to also hold shares in the company.
Individuals choose for a company structure to operate their business because their liability is restricted to the extent of their investment in the company, typically represented by share capital. Typically, creditors cannot pursue the personal assets of shareholders unless those assets have been pledged as collateral against the company's debts.
Trust
A trust comprises a trustee managing a business for its members, known as beneficiaries, with net income allocated based on regulations outlined in the trust deed. Different types of trusts exist. In a discretionary trust, the trustee possesses the authority to distribute funds to beneficiaries at Want To Know More? Their discretion. Conversely, in a unit trust, distribution is contingent upon the number of units owned by each beneficiary within the trust.