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Business Structures
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
VEA
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.
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.