Business Structuring
Structuring your business
Choosing the right legal structure is an important decision when starting, buying or growing a business. Your structure can affect how the business is owned, who makes decisions, your legal responsibilities and how your assets are held.
At Rise Legal, our business structuring lawyers assist Australian business owners with establishing companies, partnerships, trusts and joint venture arrangements, together with the legal agreements that support them.
We provide practical, plain-English legal advice and work alongside your accountant or tax adviser where tax and financial considerations are involved. Our legal services are offered on a fixed-fee basis, with the scope and cost agreed upfront.
With offices on the Gold Coast, in Perth and Sydney, we assist businesses across Australia.
- ZBusiness structuring advice
- ZCompany establishment
- ZPartnership agreements
- ZShareholder agreements
- ZUnit trust arrangements
- ZFamily trust structures
- ZJoint venture agreements
- ZBusiness restructuring
Business Structures in Australia
There are several ways to structure a business in Australia. Each has different legal requirements, ownership arrangements and implications for the people involved.
Company Structures
A company is a separate legal entity that can own assets, enter into contracts and incur liabilities. Companies are owned by shareholders and managed by directors, who have legal responsibilities under Australian corporate law.
Rise Legal can assist with company establishment and related commercial documents, including shareholder agreements and ownership arrangements.
Partnerships
A partnership allows two or more parties to operate a business together. However, depending on the structure, partners may be personally responsible for partnership debts and obligations.
A written partnership agreement can establish how profits are shared, decisions are made, disputes are addressed and partners enter or leave the business.
Learn more about our Partnership and Shareholder Legal Services.
Trust Structures
Trusts are commonly used in Australian business and investment arrangements. A trustee holds and manages assets for the benefit of beneficiaries in accordance with the terms of the trust.
Family trusts and unit trusts operate differently, particularly in relation to beneficial interests, distributions and control.
The appropriate structure depends on your circumstances, and legal advice should be considered alongside accounting and taxation advice.
Joint Ventures
A joint venture allows two or more parties to collaborate on a particular business project or commercial objective.
A joint venture agreement can document contributions, management responsibilities, profit sharing, intellectual property ownership and exit arrangements.
Read our guide to Joint Venture Agreements in Australia.
When Should You Review Your Business Structure?
The structure that suited your business when it started may no longer be appropriate as it grows or changes.
It may be worth reviewing your arrangements when:
- Starting a new business.
- Bringing in a business partner or investor.
- Buying or acquiring an existing business.
- Establishing a new company or trust.
- Changing business ownership arrangements.
- Expanding into franchising or a joint venture.
- Planning for business succession or an eventual sale.
Changing structures can involve transferring assets, updating contracts, considering existing liabilities and meeting regulatory requirements. Taxation and stamp duty implications may also arise, so appropriate professional advice is important.
Legal Agreements That Support Your Business Structure
Choosing a business structure is only part of the process. The agreements between owners and other stakeholders can be equally important.
Depending on your circumstances, Rise Legal can assist with:
- Shareholder agreements.
- Partnership agreements.
- Unit holder agreements.
- Joint venture agreements.
- Business sale and purchase agreements.
- Other commercial agreements relating to ownership and management.
These documents help clarify the parties’ rights and responsibilities, decision-making arrangements and what happens when ownership changes.
Frequently Asked Questions About Business Structuring
What is the best business structure in Australia?
There is no single structure that suits every business. The appropriate arrangement depends on factors such as ownership, liability, taxation, future growth and administration requirements.
Should I operate through a company or trust?
Companies and trusts have different legal characteristics and obligations. Some business arrangements involve a corporate trustee, while others operate directly through a company. Legal and accounting advice can help you understand which arrangement may suit your circumstances.
Can I change my business structure later?
Yes, although restructuring can involve legal, financial and taxation consequences. Existing contracts, business assets, registrations and liabilities may also need to be addressed.
Do I need a shareholder or partnership agreement?
A written agreement is strongly recommended where multiple parties own or operate a business. It can document important matters such as management, contributions, profit distributions, ownership transfers and exit arrangements.
Does Rise Legal offer fixed-fee business structuring services?
Yes. We offer fixed-fee legal services for agreed scopes of work, with the cost confirmed upfront.
Speak with Our Business Structuring Lawyers
Starting a business, bringing in a new owner or reviewing your existing structure? Rise Legal can assist with the legal arrangements and commercial agreements supporting your business.
Call 1300 064 707 or contact Rise Legal to book a free initial discovery call.
Disclaimer: The information provided on this page is general in nature and is intended for informational purposes only. It does not constitute legal advice and should not be relied upon as a substitute for advice tailored to your specific circumstances. We recommend seeking independent legal advice before making any decisions based on this information.