Choose a company structure

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Most start-ups are proprietary, limited-liability companies. But under Australian law, your start-up can have another business structure.

The Australian Securities and Investments Commission (ASIC), the government’s independent corporate regulator, gives definitions of each business structure.

For example:

‘A company is an entity that has a separate legal existence from its officeholders and members. Its legal status gives a company the same rights as a natural person, which means a company can own, buy and sell property in its own name. It can also incur debts, employ staff, sue, and be sued. Companies are managed by company officers who are called directors and company secretaries.’

ASIC also points out that a company:

has limited liability compared to other structures
is more complex and costly to establish and run
requires its officers to understand and comply with the Corporations Act 2001.

Find more information about company structures on the ASIC website and Business.gov.au.