Legal Advice Areas

We aim to give you commonsense, strategic and to the point advice on all legal issues affecting your business. We will give you a clear assessment of your position and possible options across a range of areas including:

• Purchasing and setting up a business: company, partnership and other business structures
• Contracts and commercial documents
• Franchising agreements and franchise law
• Sale of business
• Intellectual Property (copyright and design protection, trademark registration or infringement)
• Internet law and e-commerce
• Checking/vetting advertising material
• Commercial leases and retail leases
• Consumer law and trade practices law
• Misrepresentations & defamation
• Dealing with government and statutory licensing requirements for business.

Business structure FAQs

I run my business in partnership with a friend. What are some of the things I should look out for?
Is a partnership suitable for me legally?

When you participate in a partnership it is best to have a written partnership agreement in place otherwise the fall-back provisions of the Partnership Act 1892 (NSW) will apply. Unless an agreement otherwise states, the partnership business will automatically end upon the retirement, bankruptcy or death of one of the partners. For that reason, even spouses in business together should have a written Partnership Agreement between them. 

As a business partner you are legally bound and liable for all actions of the other partners. You should choose your business partners carefully, follow accounting procedures and keep communications clear, or you risk losing money to your partner, or because of your partner. You can have terms in a Partnership Agreement for the purpose of limiting your liability to unwanted debt.

A Partnership Agreement also helps minimise the misunderstandings, the distress and complications that can arise when a partnership splits up and therefore disputes, by setting out beforehand an agreed division of assets and goodwill between the partners.

I have a small business with an income of $80,000 per annum. What is the best business structure for me?

When choosing a business structure you must balance tax considerations against the legal ramifications of being a sole trader (as compared to operating through a partnership, company, family discretionary trust or a fixed unit trust).

When operating as a sole trader you have personal legal liability. Generally:

• Sole traders – personally liable for all business debts.
• Business partners – usually have unlimited liability for the debts of the partnership.
• Owners of companies – the protection of limited liability, although directors can become personally liable for debts incurred by the company whilst insolvent.

N.B. These FAQs are general information only and are not intended to be definitive advice on the subject area. For legal advice relating to your particular situation, please contact us today on 02 9789 3221 and talk to a business lawyer.