Legal Advice Areas

For any stage of your business from start-up to succession or sale, we will give you a clear assessment of your position and possible options across a range of areas including:

Company and business structures including Family Trusts
Franchising Agreements and general franchise law
Buying or selling businesses
Business succession
Intellectual Property (copyright and design protection, trademark registration or infringement)
Commercial and retail leasing
Australian Workplace Agreements
Trade Practices Act and Fair Trading Act advices
Regulatory risks and dealing with government requirements in areas including consumer law, environmental and planning law.

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 fallback 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. In a practical sense, limiting your exposure to unwanted debt may involve carefully choosing your business partners, adding systems for account compliance and keeping communications clear at all times.

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

I have a small business with an income of $50,000 per annum. What is the best business structure for me?

Many small businesses adopt a business structure based purely upon tax considerations i.e. income-tax and Capital Gains Tax liability. Increases recently in the thresholds before marginal income-tax rates kick in for individuals has encouraged some small businesses to stay sole traders for longer before seriously considering becoming a company. When choosing a business structure you should balance the tax considerations against the legal ramifications of being a sole trader as compared to operating through a partnership, company or trust.

When you operate as a sole trader you are far more exposed legally than is a company owner. Sole traders are personally liable for all business debts. Similarly, partners have unlimited liability for the debts of the partnership. Owners of companies on the other hand have the protection of limited liability, although directors will become personally liable for debts incurred if the company continues to trade whilst insolvent.

Which business structure you adopt now should also accommodate your future plans. We work closely with accountants and tax advisers to structure your affairs to be both tax-effective as well as minimising your legal risk as much as possible.

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