Structuring & Partnerships
What are the main trading types?
- A sole trader – a person trades in their individual name
- Partnership – a group of individuals (or other entities) trading together
- Trust – Discretionary (sometimes called family trusts) or fixed (sometimes called unit trusts)
- Company – the business is run by a corporate entity with shares being owned by the interested parties
Each entity type has pros and cons so it is essential to get the right advice before you begin.
Another factor to consider in business is the issue of multiple owners. This raises numerous other issues irrespective of whether they are family, friends or business associates.
How are decisions to be made?
How are profits to be distributed?
What happens if someone gets sick or dies?
It is essential that these matters be considered early to avoid heartache and disputes later on. They can easily be addressed by having the proper agreement in place.
What are the two types of agreements:
- Partnership agreements - These govern the day-to-day operation of the business and can include shareholders agreements and unit holders agreements.
- Buy/sell agreements – Also known as critical event agreements, these cover situations where someone gets sick, injured, or dies requiring that the business be restructured.
Changes to QLD Guardianship laws are now in place
From 30 November 2020, the Enduring Power of Attorney (EPA) and Advance Health Directive (AHD) forms that have been used for nearly 20 years in Queensland have been updated and amended and now must be used. If you have an EPA or AHD that was completed before 30 November it will still be valid.View All News