Proprietary Company at the initial level

Law 205
Running Head: Law 205 0
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Student’s Name

“LAW 205” 1
Contents
Sole Trader business..................................................................................................................................2
Partnership.................................................................................................................................................2
Advantage of partnership business structures 3
The disadvantage of partnership business structures 3
Corporation................................................................................................................................................4
Characteristics of the company 4
Process to set up a company 5
Advantages of Corporation Structure 5
Disadvantages of Corporation Structure 6
Regulation and reporting............................................................................................................................6
References..................................................................................................................................................8

“LAW 205” 2
A person needs to decide a range of aspects when the same decided to start a business. These aspects
include the nature of the business, the scope of the same, potential partners and so on. One such aspect
is the business structure. A business may be set up under different structure considering the priorities
and concerns of the owner. This report is addressed to Mr. Bill who is seeking details on various
business structures that are available to him for his new property management business.
Staring this informative report, this is to state that at the initiation level, a person may set his under
three structures such as sole trader, partnership firm, and Proprietary Company at the initial level. The
discussion over these structures are detailed below
Sole Trader business
As the name implies, under this business only one person may take part in the management of the
business who is the owner of the business. This person decides all the matters of the business and law
does not make any difference between the business and the owner. It means if the business fails to pay
its liability, the owner may be held personally liable for such debts (Cunningham, Nikolai-HCP, John
Bazley, Kavanagh and Simmons, 2018). Mr. Bill wants to initiate the business with his wife and also
has the plan to involve some of his friends in the subjective business that may not be possible under
this structure. Therefore Mr. Bill cannot pursue the business under this structure.
Partnership
This structure removes the barriers of sole trader business and involves two or more than two people
who work together to earn money and to distribute the same among partners (smallbusiness.wa.gov.au,
2020). However similar to the sols trader structure business of a partnership firm also does not have a
separate identity than the business owners. These owners are known as business partners. The business