Top 10 Questions for Starting a Business
By: Law 4U
1. How do I decide which business structure is best for my business?
You have to look at the objectives of the business, the tax structure you want, personal liability etc. You must get professional advice from a lawyer and/or accountant about this.
2. Can companies be deregistered?
Yes. Companies that have stopped operating can voluntarily deregister. The Australian Securities and Investment Commission can also deregister a company that has breached the Corporations Law.
3. If a company goes under and leaves debts behind, what property is available to meet the debts?
Because of the limited liability of shareholders, it is usually only the company's assets, plus any money owing on shareholdings. Note, directors may also be personally liable in certain circumstances.
4. Are new partners equally liable for the actions of the partnership before they joined?
Not usually, unless this is part of the agreement under which they joined.
5. What about a partner who has left the partnership?
A retiring partner is liable for actions taken by the partnership whilst they were a partner, unless there is a specific agreement to the contrary.
6. Where do I get a business plan?
There are lots of books and software programs that can help, and consultants who do this for a living, as well as some accountants.
7. Isn't it better to enter into a periodic tenancy agreement for my shop in case the business fails?
That might seem like a good idea on the face of it, but remember, you tend to build up goodwill in a particular location, and if you don't have a fixed term lease, you may be evicted with a month's notice and lose all the goodwill you have worked to establish.
8. Is an assignment of a lease the same as sub-letting?
No. It's better to be able to assign a commercial lease, because sub-letting means you are still responsible to the landlord for the term of the lease.
9. Who owns the copyright of products developed by employees?
If the work is created in the course of employment, the copyright is owned by the employer.
10. Is there a law that regulates franchises?
Yes, the Franchising Code of Conduct was introduced in July 1998. It sets out rules in relation to disclosure, the franchise agreement, processes for dispute resolution etc.
Read this: This fact sheet is intended to be general information about the law in Australia. It is not a substitute for legal or other professional advice. Lawscape Communications Pty Ltd or First Point Media does not accept responsibility for loss to any person, who either acts or does not act because of this fact sheet.
© Lawscape Communications P/L
Last Updated – February 2008
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