Partnership Business Structure Australia - Pros & Cons

Описание: In this video Dannie McKinnon from The Field Group Accounting will be talking about the Partnership business structure and why you might consider structuring your business as a Partnership.

A partnership at common law is not a separate legal entity. Two or more people, or entities, can enter into an agreement either verbally or under contract to enter into a business and share in the risks and profits. Partners are jointly and severely liable for debts and litigations of the partnership.

Establishment
A partnership agreement should be in place
May require a company to act as agent
Use of any business name should be registered
May require registration for TFN, ABN, GST and/or PAYG

Advantages
Relatively inexpensive to establish
Ability for income splitting between partners
Partners may obtain 50% CGT discount
Small business CGT concessions easily obtained
Partnership losses distributed to partners to be offset against other income
Individual partners’ benefits not subject to FBT
Any entity can be a partner

Disadvantages
The partners are jointly and severely liable
Distributions from partnership must be in proportion to ownership
Changes in partners will have CGT consequences
Partners cannot be employed by the partnership for salary packaging
purposes
Income cannot be accumulated in the partnership

To learn about the other business structures available in Australia watch our other videos below:

TRUST -    • Trust Business Structure Australia - Pros ...  
SOLE TRADER -    • Sole Trader Business Structure Australia -...  
COMPANY -    • Partnership Business Structure Australia -...  

For more information visit https://fieldgroup.com.au

This document contains general advice only and is prepared without taking into account your particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should speak to a licensed financial advisor who should assess its relevance to your individual circumstances. While The Field Group believes the information is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk. The information provided in this bulletin is not considered financial product advice for the purposes of the corporations Act 2001.