The Business and Legal Environment

  Identification of the Main issues in the provided Case Scenario including: a. identifying and discussing the various types of business structures within a legal context in Australia, and b. Providing advice on the advantages and disadvantages of using various types of business structures through the use of legal research techniques. Assignment Topic - Case Scenario Susan and Mustafa have decided to go into a ‘Travel Agency’ business together. They will be focussing on providing budget travel and accommodation packages to International Students travelling and holidaying at sightseeing spots all around Australia. They currently have around $40,000 in assets and intend to take out a Loan of $40,000 from the Bank- to help establish their business. Their projected income for the first twelve months is around $80,000 but they expect that with a proper and efficient service, their business is bound to grow quickly. They have hopes that in a short period of time they will be able to attract others to invest and become part owners of the business. Before commencing their Agency, Susan and Mustafa seek your advice as to the advantages and disadvantages of entering into different types of business. You are to provide detailed advice and recommendations as to the most suitable and desirable Structure for them, having regard to all relevant matters - including the areas of Asset Protection and minimising Income Taxation Protection Structure must be forcus 1. Introduction Mostafa and Susan see advice in relation to the establishment of a business. This advice pages will examine the various business structures and other discuss the most appropriate structure for them 2. Various Business Structure 2.1 Structures 2.2 Sole trade 2.3 Partneship 2.4 Company – Salom v salomon 2.5 Trust Each need to Features, advantage , disadvantage , tax implications 3. Advice Answer is private company with a limited share explain ; limited liablity Protection of asssets Tax is easier Decide the structure ( diretor, how much shares) 4. Reference