Corporation and Business Structure

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Corporation and Business Structure
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Corporation and Business Structure 1
Contents
Part A...............................................................................................................................................1
Part B...............................................................................................................................................2
Part C...............................................................................................................................................3
Bibliography....................................................................................................................................5
Books and Journal........................................................................................................................5
Case Laws....................................................................................................................................5
Legislations..................................................................................................................................5
Books and Journal........................................................................................................................6
Other Source................................................................................................................................6

Corporation and Business Structure 2
Part A
Basically there are three types of legal entities formed in the environment that are sole trader,
partnership firm and proprietary company. All the three types of formations have different
business structures that are available for people in the environment. This part of the paper will
adequately explain and evaluate the set up and administration cost along with the administrative
burden in the three different types of legal formations present in the environment. Initially taking
about sole trader formation, it should be noted that under this state a person single handed own
and control the functions of the enterprise. This is the simplest form of the starting the business
as it does not include any legal formalities involved in it.
However, registration of business is required in Australia; otherwise the business will fall under
the category of exemption. Cost of registration for a business is $36 which is also applicable for
a sole trader type of business entity as well. It should also be noted that a separate bank account
is not required for this type business. Low cost of maintenance is an attractive feature of this type
of business however; the burden in a sole trader entity is completely applied to the sole owner
only. It is important for a sole trader to keep the account of minimum five years that involves the
cost factor1.
Second aspect is a partnership business structure which involves two or more people for its
formation. The registration of this business structure is same as sole trader. It is important to
register the name of business along with Australian business number and separate bank account
as well. The trademark of a partnership business costs more than a sole propriety. Administrative
burden and liability is also shared under this type of business structure. Company is most
different form of business structure as in Australia, it is important for every organization to
register themselves under ASIC. The cost of registration of a company is $488 and the annual
review fee is $263 if the proprietary is registered with ASIC. The administrative burden is held
by the directors and other officers of the company2.
1 Shawn Bayern, The Implications of Modern Business–Entity Law for the Regulation of Autonomous
Systems. European Journal of Risk Regulation 7.2 (2016): 297-309.
2 Business.gov.au, What are the set-up steps and costs? (Web Page) <https://www.business.gov.au/change-and-
growth/restructuring/sole-trader-to-a-company/difference-between-a-sole-trader-and-a-company/what-are-the-
set-up-steps-and-costs>.