Simon Venus, Partner, Piper Alderman
Geoff Rees, Director and Caryn Sim, Lawyer, JRT Partnership Pty Ltd (Vic)
Currently updated by Roger Wade, Director, WadeLegal (Qld)
Originally authored by Warren Wackerling, Principal, Team Lawyers (Qld)
Currently updated by Eric Ross-Adjie, Principal and Andrea Keri, Principal, Warren Syminton Ralph (WA)
Originally authored by Eric Ross-Adjie, Partner; Christopher Hall, Solicitor; Maria Di Martino, Associate; Karp Steedman Ross-Adjie (WA)
Simon Venus, Partner, Piper Alderman (SA)
Tim Tierney, Principal, Tierney Law (Tas)
Currently updated by Lyn Bennett, Consultant, Minter Ellison (NT)
Originally authored by Leon Loganathan, Partner and Emma Farnell, Lawyer, Ward Keller Lawyers (NT)
Currently updated by Alice Tay, Partner, Meyer Vandenberg Lawyers (ACT)
Originally authored by Alice Tay, Partner and Eve Martin, Associate, Meyer Vandenberg Lawyers (ACT)
Commencing a business as a company
Company structures are one of the most widely used business structures in Australia. Key attributes of a company include:
-
it is a legal entity (distinct from its members), has perpetual succession and can sue and be sued and own property in its own name;
-
the liability of the members of a company is limited to the money they owe on any shares they own and/or for any amount of money they guarantee to contribute upon winding up of the company; and
-
shares in a company may be readily transferred (subject to any restrictions in a company's constitution).
See Commencing a business as a company.
Advantages and disadvantages of a company structure
A company as a business structure has a number of advantages. These include:
-
being a separate legal entity;
-
perpetual succession;
-
ease of transferring interests;
-
flexibility;
-
limited liability;
-
familiarity;
-
favourable tax rates; and
-
protection to the company name.
However, there are also disadvantages to consider. These include:
See Advantages and disadvantages of a company structure.