Business Structure

The returnss for union are the lack of necessary formality for its formation, and formerly Partnership Act (NSW) is satisfied, the partnership volition be formed. second since it is not separate tax revenueable entity, the profits will be divided and paid by each member of the partnership as income, on that pointfore if the Neils wife and elder babe are not working, therefore they can be include into the partnership to reduce tax. However there are disadvantages with partnership. Firstly, his 15 years old child cannot join the partnership since he is below the age of consent, and cannot effectively enter into agreement. Secondly there is no notion of limited liability; hence the category will be subject to potential liability. Furthermore since partners sting each other, then the inclusion of Neils wife and news also transfer their liability and potential debts to Neil.



Also the advantage of reduction of tax if wife and son has lower tax threshold may not work if they have a high threshold or the profit of bakery is large, then potentially the tax rate can reach the uttermost 45%, as such it will not be as profitable as company. Lastly there is the hold out of fundraising; since partnership is to carry on a business in common with a view of profit then it is effortful to raise funds from outside. Although limited partnership may be used to avoid the extension of the liability to the house, but Neil will have no role in the operation of the bakery.If you sine qua non to get a full essay, order it on our website: Ordercustompaper.com



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