Suitability of Different Business Structures for a Retail Business

Running head: BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note

1BUSINESS LAW
There are different business structures that help up different forms of business in
different ways, each one emphasizing on a certain part of the business. However, all of these
have the common aim to make profit. Like a partnership form of a business have a common
goal to make profit along with all its partners as per their contribution to the form, while a
trust looks forward to protect a property or a business for the benefit of the beneficiary for
whom the trust is formed. In this paper we discuss about the suitability of different business
structures for a retail business that includes four members, two of whom are adults and two
are minors.
Partnership
Partnership involves at least two people who create a partnership form in order to
carry out a business with the goal of making profit. A partnership can be general as well as
limited. It is a simple and cheap business setup involving two persons at least with unlimited
liability for the members (Iyer, 2013). The partners shall be individually as well as
collectively liable for the obligation of the form and the debt incurred by the firm while it is
in operation. The partners of the firm have the liability to share the profit and loss of the
business in accordance to their personal contribution made to create the firm. In a partnership
form of business the partners are the principal as well as the agent of the firm, and the
partners are all bound with each other as long as they are a part of such firm. Partnership is a
contractual relation between the partners, made orally or in writing; implied partnership
business is not uncommon as well (Iyer, 2013). Registration of a partnership firm is not
mandatory in Australia; however, a firm having a turnover above $75,000 needs to be
registered for filing GST.
It is easy to form a partnership firm and therefore, even easier to change its structure
and give it a different form of business if necessary. It involves least external regulation. It