ASPECT SOLE PROPRIETORSHIP PARTNERSHIP PRIVATE COMPANY DISCRETIONARY TRUST UNIT TRUST
1.
Complexity
Easy to explain and comprehend. Relatively easy to explain and comprehend. Complex: requires an understanding of Corporations Law and practice and the concept of the corporate entity being distinct from the individual investors.  Many formalities must be complied with. More complex: requires an understanding of Corporations Law and practice (company as trustee) and trust law and practice and concepts of beneficial but not legal title. Same as Discretionary Trust.
2.
Primary Law & Constitution:
Partnership Act of particular State or Territory and partnership deed. Appropriate Corporations Law and Company Constitution. Appropriate Corporations Law and Company Constitution (company as trustee) and appropriate State or Territory Acts relating to Trusts and/or Trustees and Trust Deed. Same as Discretionary Trust.
3.
Establishment Time
1-2 days Around 1 week 2 days 4 days 4 days
4.
Establishment Cost: (Approx minimum; exclusive of GST)
Minimal $550 $700 $1,300 (including company as trustee) $1,300 (including company as trustee)
5.
Limitation of Liability of “Proprietors”
Unlimited Liability Partners are jointly and severally liable to an unlimited extent for partnership debts. Shareholders liability is limited to extent of risk capital (paid-up + uncalled capital).  Directors may have personal liability for debts incurred knowing that they can never be repaid. Liability is usually limited to extend of risk capital of the trustee company.  Liability of trustee (and Directors as for private companies) with right of indemnity against trust assets.

Some potential liability.

 

 

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Comparison of Main Business/Tax Structures

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