Structures
Companies
Shareholders 'own' the company. Directors manage the business. It is a seperate legal entity (person). Governed by ASIC and the Corporations Law.
Trusts
An arrangement made whereby a Trustee holds assets for the benefit of another person/s, otherwise known as beneficiaries. Affairs are private. The parties to a Trust are the: Settlor (founder or grantor), Trustee, Beneficiaries, Appointer or Principal.
Types of Trust include: Discretionary, Fixed (non discretionary eg.Unit Trust), Hybrid (contains elements of discretionary and fixed). There are many different types which may include: Superannuation Fund, Charity, Purpose Trust, Bare Trust, Testamentary Trust (established by a Will not a Deed), etc.
Single Individual
In a business sense this is referred to as 'sole trader'. Individual marginal tax rates apply.
Tenants-in-Common
This where two or more people own seperate interests in an asset. Each tenant is able to sell or dispose of their share of the asset and direct their interest under their Will. Property title deeds normally state the ownership arrangement eg. co- or jointly owned. In NSW if the contract does not detail how the asset is owned then it is automatically deemed to be tenants-in-common.
Joint Tenancy
Where two or more people jointly own an asset. Upon the death of a joint tenant all the interests in the asset automatically pass to the surviving tenant. Generally these assets are protected from any challenges to the Will. In NSW joint tenant assets could form part of the estate if declared 'notional assets'.
Partnerships, Limited Partnership (applies only to some states)
Potential for unlimited liability on those involved.
PARTNERSHIP ACT 1892