The company business structure remains to be one of the most common business structures, and with good reason. Even though it is never always going to be the best choice for the business owner, there’s no denying that a company structure certainly offers a number of attractive benefits.
If you’re still undecided about setting up a company, then you have definitely come to the right place. Here are top reasons why you might consider starting a business under a company structure.
Easy Set-Up
While setting up a company isn’t as simple as getting off the ground as a sole trader, it is definitely not an uphill task. It simply takes a number of steps that need to be followed from the word go. In a nutshell, you need to register as a legal entity, register company name and apply for ABN. Moreover, you should establish governance rules for your company, decide company officeholders, and determine share structure.
Limited Liability
One of the biggest benefits of setting up a company is that it’s regarded as a separate legal entity, entirely separate to your personal assents. You need to remember that the company entity is operated by a director, or directors, and owned by its shareholders. For this reason, the bulk of the liability is borne by the company itself.
What this simply means is that in the event the company finds itself facing legal action, then the company entity itself shoulders the liability. Things are not any different if it faces financial difficulty. The company’s shareholders are only liable for the debts that the company has incurred that match their share percentage.
Straightforward Transfer of Ownership
Considering a company structure is built with flexible growth options and allows for easy transfer of ownership, the act of transfer of ownership is pretty simple. After all, you it can all be done through ASIC.
While selling your company is much more involved, transferring ownership itself tends to be fast, efficient, and takes the hassle and heartache away from passing on the name of a business you’ve struggled to see thrive.
