|ASPECT||SOLE PROPRIETORSHIP||PARTNERSHIP||PRIVATE COMPANY||DISCRETIONARY TRUST||UNIT TRUST|
|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.|
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.|
|1-2 days||Around 1 week||2 days||4 days||4 days|
Establishment Cost: (Approx minimum; exclusive of GST)
|Minimal||$550||$700||$1,300 (including company as trustee)||$1,300 (including company as trustee)|
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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