From December 1 2009 the Retail Shop Leases Registry and Tribunal will be amalgamating into the Queensland Civil and Administrative Tribunal.

Until then the Retail Shop Leases Registry and Tribunal will continue to handle any matters under the Retail Shop Leases Act (Qld).

Need help with a Retail Shop Lease or a Commercial Lease? Contact Dave Cheng.

The ATO has published a useful little brochure to remind business owners and directors of the the notifications they need to give the ATO when winding up or ceasing business.

Ceasing your business: Letting us know when you are no longer in business

Our Business Lawyers with lawyers in Brisbane & on the Gold Coast can help you answer that question.

The answer is going to depend on your circumstances and factors like -  the type of business, the size of the business and your plans for the future.

Here is some information to get you started.

Sole Trader

Definition: As a sole trader you are the sole business owner and trade in your own name. (e.g. Fred Smith Plumber).

• Name – You can usually trade in your own name without having to register a business name
• Simple – your customers / clients know precisely who they are dealing with
• Staff – sole traders can have staff. You do not need to all the work
• Tax – you pay tax at your personal marginal tax rates
• GST – the GST rules still apply
• Risk – your personal assets are at risk from liabilities you may incur in the business

Partnership

Definition: A partnership is two or more persons carrying on a business together with a view to a profit.

• Name – You will usually have to register a business name
• Partnership Deed – You and your partner(s) need to be clear about your obligations and rights
• Tax – the partners pay tax at their respective tax rates
• Risk – partners are generally personally liable for the liabilities that arise in the business
• Rest – a partner can make it possible to take a break

Trust

Definition: A trust is a relationship where the trustee carries on a business for the benefit of certain benificaries.

• Trustee – A trust can only conduct business via a trustee. A trustee can be a natural person(s) or a company
• Type – there are different types of trusts – discretionary (family) trusts, unit trusts and hybrid trusts
• Tax – Income splitting – the trustee can split income to beneficiaries with tax paid at their respective tax rates
• Asset protection – trust assets and personally owned assets can often be kept separate. Careful consideration in drafting of the trust is needed here.
• Penal tax  – penal tax is levied on retained earnings

Company

Definition: A company is a legal person (apart from its directors and shareholders) providing limited (”Ltd”) liability protection.

• Single director and shareholder is all that is needed
• Tax – a flat 30c in the dollar tax rate applies
• Asset protection – company liabilities generally remain in the company
• Retained earnings – can be accumulated (and only taxed at the 30c in the dollar flat tax rate)
• Dividend franking – dividends can be franked or unfranked

More >> Checklist for starting a small business in Australia | Our Business Law services | www.corneyandlind.com.au