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Business Structures

 Business structure

The most common types of business structures in Australia are:

Sole trader
Company
Partnership
Trust

 Choosing your business structure
One of the key decisions when starting a business is its structure. The choice of structure will depend on the size and type of business, personal circumstances and how to grow the business.

 Your business structure - Choosing a business structure
This web page provides information on the most common business structures.

 Business Structures
Outlines the pros and cons of each business structure.

Business Structure Video

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Types of Businesses

 Sole trader
A sole trader business structure is a person trading as the individual legally responsible for all aspects of the business.

 Sole trader: WA
A sole trader is the simplest form of business structure and is relatively easy and inexpensive to set up. As a sole trader you will be legally responsible for all aspects of the business. 

 Partnership
A partnership is a business structure that involves a number of people who carry on a business together. 

 Partnership: WA
A partnership involves two or more people (up to 20, with some exceptions) going into business together with a view to making a profit. In Western Australia, partnerships are governed by the Partnership Act 1895.

 Company
A company is a separate legal entity, unlike a sole trader or a partnership structure. This means the company has the same rights as a natural person and can incur debt, sue and be sued. The company’s owners (the shareholders) can limit their personal liability and are generally not liable for company debts.

 Company: WA

A company is a separate legal entity and can incur debt, sue and be sued. The company’s shareholders (the owners) can limit their personal liability and are generally not responsible for company debts.

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