Business Entities - Partnerships
A partnership is the conduct of a business by two or more people, who have the status and authority of owners or principals. A partnership shares much in common with a sole trader, because the business is NOT a 'separate' entity from the individuals who conduct it.
- In a normal partnership, the liability of members is unlimited. Liability extends to their personal property, as well as the partnership assets.
- A partnership can register a business name.
- A partnership is required to lodge an income tax return.
- The taxable income or loss of a partnership is distributed to the partners, in proportion to their designated percentage of ownership within the partnership.
- The partner declares their individual share of the profit/loss in their own income tax return, and then pays the assessed income tax.
- It is desirable that partners set out their rights and responsibilities in a written partnership agreement
If you would like to discuss business structures, please do not hesitate to contact us.
| Personal Property Securities Register
|Important Australian Government information about the Personal Property Securities Register (PPSR) – an online register introduced on 30 January 2012 that protects your business when buying, selling or leasing out property including valuable goods, stock, vehicles, machinery, office equipment, crops and livestock – almost anything except real estate.
Are you selling on terms, such as retention of title, or leasing out valuable goods?
Registering your interest in goods which you haven't been paid for can help you to recover the debt if your customer doesn't pay or becomes insolvent.
The two-year grace period to register any interests not yet registered is about to end?
ACT NOW to register any outstanding pre-PPSR interests on the Personal Property Securities Register before the grace period ends on 31 January 2014.
Is your business buying valuable second-hand items?
You can also check the Personal Property Securities Register to see if that second-hand machinery, equipment, vehicles, stock or other valuable used item you want to purchase is debt-free and safe from repossession. Doing a search to check before you buy is low cost, easy and immediate.
Anyone can use the PPSR.
For more information about the PPSR, the grace period, or to search or register an interest, visit the PPSR website.