Topic 11: Managing_ Business
Start-Up_
< Preparation>
# Before a person starts trading, they should:
- do some research,
- protect the IP,
- prepare a plan,
- raise some money, and
- take out insurance
Business structures
# When starting a new business one of the most important legal questions a person will have to answer for themselves is
which business structure they will adopt #
It’s a legal form of a business organisation
The most common types of business structure are:
Sole trader
o full control -> liability
Partnership (2 or more)
o one partner can make debts on behalf of other
Company
o formality to create & limited liability
Trust
o Benefits for taxation purpose
# These business structures are not mutually exclusive #
The person’s choice of business structure will have important consequences in term of:
- The ease and cost of setting up the business,
- Their legal and financial liability,
- The way they pay tax,
- Their ability to raise finance, and
- Their ongoing regulatory obligations
, <Licences and registration>
Registering business name
# Unless a business owner proposes to carry on business under their own name (including their surname and first name, or
surname and initials), they must register their business name in each State and Territory in which they propose to carry on
business #
This requirement applies to sole traders and partnerships. If the business owner chooses to use a company and
proposes to carry on business under a name different to the registered name of the company, the business name
must be registered.
The purpose of requiring registration of a business name is not to protect the business owner’s interest in the name but to
protect the public by:
Making the identity of the person or company behind the business name publicly available and identifiable in the
event of a problem, and
Avoiding the potentially misleading situation of having two businesses with the same business name
Complying with licensing requirements
Licences
# A business may require one or more licences from the relevant Federal, State or Local government body #
Example:
- A licence to erect advertising signage
- Registration of a swimming pool
- Music and video licences
- Vehicle registration
<Renting or buying the premises>
Buying the premises
# The process of acquiring ownership of real property is called the “conveyance” #
Under the old system of title, ownership is established by chain of title
Under the Torrens system of title, ownership is established by registration & computer file
When a person purchases real property they acquire:
- The land
- The buildings, and
- The fixtures (other than tenant’s fixtures)
Start-Up_
< Preparation>
# Before a person starts trading, they should:
- do some research,
- protect the IP,
- prepare a plan,
- raise some money, and
- take out insurance
Business structures
# When starting a new business one of the most important legal questions a person will have to answer for themselves is
which business structure they will adopt #
It’s a legal form of a business organisation
The most common types of business structure are:
Sole trader
o full control -> liability
Partnership (2 or more)
o one partner can make debts on behalf of other
Company
o formality to create & limited liability
Trust
o Benefits for taxation purpose
# These business structures are not mutually exclusive #
The person’s choice of business structure will have important consequences in term of:
- The ease and cost of setting up the business,
- Their legal and financial liability,
- The way they pay tax,
- Their ability to raise finance, and
- Their ongoing regulatory obligations
, <Licences and registration>
Registering business name
# Unless a business owner proposes to carry on business under their own name (including their surname and first name, or
surname and initials), they must register their business name in each State and Territory in which they propose to carry on
business #
This requirement applies to sole traders and partnerships. If the business owner chooses to use a company and
proposes to carry on business under a name different to the registered name of the company, the business name
must be registered.
The purpose of requiring registration of a business name is not to protect the business owner’s interest in the name but to
protect the public by:
Making the identity of the person or company behind the business name publicly available and identifiable in the
event of a problem, and
Avoiding the potentially misleading situation of having two businesses with the same business name
Complying with licensing requirements
Licences
# A business may require one or more licences from the relevant Federal, State or Local government body #
Example:
- A licence to erect advertising signage
- Registration of a swimming pool
- Music and video licences
- Vehicle registration
<Renting or buying the premises>
Buying the premises
# The process of acquiring ownership of real property is called the “conveyance” #
Under the old system of title, ownership is established by chain of title
Under the Torrens system of title, ownership is established by registration & computer file
When a person purchases real property they acquire:
- The land
- The buildings, and
- The fixtures (other than tenant’s fixtures)
