Starting a Travel Agency Business in Australia: Advice on Business Structure and Registration Process

1. Detailed Advice and Recommendation
Before starting a business, some critical aspects needs to be considered are financial capital,
financial needs, risk and business prospective. After registering the business, it would be
difficult for Barbara and Brandon to switch legal structure. An appropriate legal advice can
be given only after assessing the critical factor such as liability, flexibility, individual
liability, business complexity, taxes, control, licenses, permits and regulations. The most
common business structure to starts a business in Australia are sole trader, partnership,
company, Trust, incorporated association and co-operative (Business.gov.au, 2018).
In this case Barbara and Brandon have limited capital of $40,000 and intend to take out a
Loan from the bank amount of $40,000. Both Barbara and Brandon are equally partners in
the business. Therefore the most suitable business structure is ‘Partnership’ form of business.
There are two types of partnerships structure General Partnership and Limited Partnership. In
general partnership, the partners involves in daily management of the business whereas in
limited partnerships structure, the partners may not involved in daily management and
operational activities of the business (Business.gov.au, 2018). Barbara and Brandon have
option to starts the business as a General Partnership as well as Limited Partnership (LP).
Since, they are planning to attract investors; the LP can be best suited for them. If the
numbers of investors increases there is the option to switch the legal structure in to a
company (Braithwaite and Drahos, 2000).
The partnership form of business is low-cost and simple to starts; there is less reporting
requirement, legal constraints and most of the power and liability shared between partners. In
partnership structured business Barbara and Brandon could share of the business’s tax losses
and there is opportunities for them for tax planning such as splitting between members of
family that that of a sole trader. Another advantage of ‘partnership structure business’ is that
it is easy to dissolve and a partner can recover the share after resignation (Braithwaite and
Drahos, 2000).

2. Process and requirement for registering the business.
Before starting a business, it is important to maintain the process and requirement in order to
avoid legal constraint. Barbara and Brandon can take legal assist for the process or can do it
by themselves online. Some of the basic requirements are follows:
Step 1: Decide and make business structure.
Before starting a business, it is necessary to select the appropriate business structure. As
already discussed, in this case the partnership structure business is most suitable. Depending
on the state or territory, Partnerships Structured Company is governed by:
SA - Partnership Act 1891,QLD - Partnership Act 1891,WA - Partnership Act 1895,TAS -
Partnership Act 1891,ACT - Partnership Act 1963,NSW - Partnership Act 1892,NT -
Partnership Act 1997,VIC - Partnership Act 1958
Step 2: Apply for Australian Business Number (ABN)
Applying for an ABN number is not an extremely critical task; it can be done within 15-20
minutes by providing some details in online application “https://register.business.gov.au/”.
The mostly probable details required are:
 personal details
 business information
 associate details
 reasons for application
 business activity details