Business Laws - Sample Assignment PDF

Running head: BUSINESS LAWS
Business Laws
Name of the student
Name of the university
Author note

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BUSINESS LAWS
Draft Business Plan”
 The best business
There are various form of business structures which are available in relation to conducting a
business. These include sole trader, partnership and company. In the given situation sole trader
cannot be used and number of people is more than one. Partnership cannot be used as additional
funds are required and they cannot obtain public funding. A company would be the best business
structure in this situation and more specifically a proprietary company as they may raise money
from private investors by giving them shares in the company. In addition Adam and Betty along
with me will have a limited liability where we select the structure of a proprietary company as it
is one of the features of such business structure. The liability of the proprietary company will be
different form our personal liability as it would be a separate legal person (Beatty, Samuelson
and Abril 2018).
 Advantages and disadvantages of starting in the business based on the business
structure
Where we choose to carry out the salon business through the use of a proprietary company there
would be many advantages and disadvantages which we would be subjected to. One of the
primary advantages in the situation would be that of limited liability as the liability of the
proprietary company will be different form our personal liability as it would be a separate legal
person (Glover and Doss 2017). We will also be able to get the additional $150,000 required by
giving shares to private investors. In addition we can appoint Charles as the director or manager
in the company or as a mere employee and we do not need to provide him with any ownership.
On the other hand we would also be subjected to certain disadvantages by using the structure.

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BUSINESS LAWS
This is because in order to use the structure we would require additional cost for its registration
and formation which is a complex process. In addition there would be a problem in relation to
management as the minority shareholders will also have a say in the way in which the company
is managed and they can use the derivative action provisions under section 232-234 of the
Corporation Act 2001 which is the main law which governs companies.
 Protection of investments and assets
The use of this structure will provide use protection under the provisions of limited liability.
None of our personal assets can be attached in relation to the situation and will be only at
maximum liable to the investment which we have done in the situation. In addition we can have
a business indemnity insurance to ensure that the investments and assets of the business are
protected in case of any unforeseen event and losses take place within the business. There are
other forms of insurance also which can be put in place to protect the investments and assets of
the business.
 Main start-up costs
The main start up cost in relation to the business is as follows
1. The business would have to pay the rent in relation to the premises where the salon will
operate
2. He business would require investment in relation to the equipments and tools along with
cosmetics required for the salon
3. The business would further require staff would carry out the salon work
4. The business would also need additional miscellaneous expenses such as accounting cost,
manager remuneration, auditing fees, insurance premium and electric expenses.

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BUSINESS LAWS
5. The business would also need to pay corporation tax which is fixed at 30% subjected to
offsets and deductions as provided by the Australian Taxation office.
 Business name
The business name has to different from other business names and must be unique. The name
can be searched at the website of the Australian Securities and Investment Commission’s
register. The name which we have selected for the purpose of the business is SJYC salons Pty
Ltd which is currently available as provided below.
Source: Connectonline.asic.gov.au. (2018)

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BUSINESS LAWS
Cost to register the chosen business name
The fee which is charged by the ASIC in relation to the registration of the business names
are as follows
1. $35 for 1 year
2. $82 for 3 years (Business.gov.au 2018)

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BUSINESS LAWS
References
Business.gov.au. (2018). Register your business name. [online] Available at:
https://www.business.gov.au/info/plan-and-start/start-your-business/business-and-company-
registration/business-name-registration [Accessed 10 May 2018].
Connectonline.asic.gov.au. (2018). Search Business Names Register. [online] Available at:
https://connectonline.asic.gov.au/RegistrySearch/faces/landing/bn/SearchBnRegisters.jspx?
_adf.ctrl-state=i625ehjo1_4 [Accessed 10 May 2018].
Beatty, J.F., Samuelson, S.S. and Abril, P.S., 2018. Business law and the legal environment.
Cengage Learning.
Glover, W. and Doss, D., 2017. Business law for people in business. Austin, TX: Sentia
Publishing.