Business Structures: Partnership and Company Comparison - LAWS20059

This report provides a comparative analysis of two primary business structures: partnerships and companies, within the context of Australian law, specifically LAWS20059. The report explores the cost, administrative, and regulatory burdens associated with each structure, referencing key case laws such as *Joyce v Morrissey* and *Salomon v A Salomon and Co Ltd* to illustrate relevant legal principles. It also examines the potential liabilities of participants towards third parties, differentiating between the joint and several liabilities in partnerships, as seen in *Saywell v Pope*, and the limited liability of shareholders in companies. Furthermore, the report delves into the fiduciary duties of partners and company directors, referencing cases like *Birtchnell v Equity Trustees Executors & Agency* and *ASIC v Adler* to highlight the importance of acting in good faith and prioritizing the interests of the business. Based on this analysis, the report recommends a limited liability partnership (LLP) as the most suitable structure for clients seeking to run a business collaboratively while limiting personal liability. The report concludes by summarizing the key differences between partnerships and companies and emphasizing the importance of understanding fiduciary duties when selecting a business structure.