Choosing a Business Structure

A sole trader business structure means that one person owns and runs the business. As a sole trader, you and your business are considered the same for legal purposes. This gives you complete control over how the business operates, and any money the business makes is taxed as your personal income.

One of the main advantages of being a sole trader is that it’s easy to set up and usually costs less to start. However, you should be aware that if your business owes money and can’t pay, your personal belongings, like your house or savings, could be at risk because you’re personally responsible for those debts.

Becoming a sole trader is a good choice if you want to start a small business on your own or work with just a few people. This setup is especially useful if you’re trying out new business ideas or just getting things started. So, if you’re looking to launch a small venture by yourself or with a small team, becoming a sole trader might be the right path for you.

A partnership involves two or more people running a business together. In a partnership, you share profits, losses and decision-making, and all partners are responsible for the business’s debts and risks.

Partnerships work well for family-run or jointly operated businesses, where each partner brings different skills or resources. It is important to clearly document roles and authority, as shared decision-making can be challenging when partners disagree.

A proprietary limited company is a type of business that operates independently from its owners. This means that the company can own property and make agreements in its own name. People who manage the company, known as directors, have specific responsibilities and are usually only responsible for what the company owns, protecting their personal assets.

This kind of company is a great choice for businesses looking to grow, attract investors, or pursue new opportunities. It can also help establish trust with potential funders, government agencies, and larger businesses. However, setting up and maintaining a company involves more complex rules and higher costs compared to other business structures, especially in terms of managing risks and ongoing requirements.

A trust is a legal setup where one person, known as the trustee, takes care of assets for the benefit of others. This arrangement keeps ownership and control separate and can be created to help families or communities. Trusts can be complicated and often need guidance from legal and financial experts to make sure they meet your goals and values. They work particularly well for families or community groups looking to plan for the future and manage their assets over time.  

An ORIC, or an Indigenous Corporation, is a special type of organisation created to help Indigenous communities manage their collective resources and make decisions together. It operates under specific laws outlined in the Corporations (Aboriginal and Torres Strait Islander) Act 2006 and is overseen by a government office that supports Indigenous corporations.

The main goal of an ORIC is to ensure that the community’s interests are prioritised, promoting strong practices of accountability, transparency, and respect for cultural values. Members and leaders of the corporation have clear responsibilities to help ensure everything runs smoothly.

By registering as an ORIC, communities can strengthen their cultural leadership, make decisions collectively, and achieve positive outcomes for everyone involved. This structure is particularly beneficial for organisations that are run by the community, focusing on cultural and social projects, economic development initiatives, and businesses that aim to support the long-term well-being of the community.