Business Structure Analysis Essay

1517 Words Sep 26th, 2014 7 Pages
This report is aim to advice Sheldon around the best business structure for his business called Australian agricultural services. There are six types of business structures under Australian Law, including associations, joint venture, trust, sole trader, partnership and companies. The report briefly explains the reasons for abandoning associations, trust and joint venture and focuses on the advantages and disadvantages of applying sole trader, partnership and companies. Overall, the report provides the best business structure to Sheldon.

Associations, joint venture, trust

Associations are the business structure for not-for-profit activities (such as sporting or community services groups), which can be divided into unincorporated and
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Which means he completely owns and controls the business. Secondly, Sheldon retains all the profits of his business.
In comparison, the disadvantages are obvious as well. Firstly, a sole trader is not a separate entity. Sheldon equals to the business in law, which means Sheldon is liable for the debts with all of his personal properties, no matter if the properties are gained from the business or not. Secondly, If Sheldon applies sole trader it is hardly to take care of the business in different areas on his own.
Above all, it is not recommended to conduct a sole trader.

Partnership

A partnership is an association of people carrying on business in common with a view to a profit. Partnership simply arises as a matter of law where two or more people are in this relationship. Partnership includes general partnership and limited partnership. They are decided by whether the partners participate day-to-day management and whether partners’ liabilities are limited or not. If and only if the partners do not involve in the daily management and have limited liabilities, it is a limited partnership. If not, it is classified in a general partnership.

As in Sheldon’s case, his families have interests on investing money on the fund of business without involve in the day-to-day management. In the mean time, Sheldon is currently in Cowra, a small town in rural NSW. He plans to hold the opportunities in far North

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