| 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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