The most common types of business structures in Australia are:
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.
Outlines the pros and cons of each business structure.
Business Structure Video
Types of Businesses
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.
A partnership is a business structure that involves a number of people who carry on a business together.
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.
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.