Our lawyers have experience with a wide range of businesses and industries. We can tailor solutions for your individual circumstances and to address the many challenges that arise throughout the life of your business.

Business structures

Before setting up your business, it is important to choose a structure that will best suit your new venture. This depends on your financial situation, as well as your plans and goals for the business. Our lawyers can help you determine which structure is best for you and provide guidance on any obligations you may have.

If you are starting your business alone and it will be a small enterprise, you may wish to operate as a sole trader. A sole trader is legally responsible for all aspects of the business and operates using an ABN.

If you are starting a business with another person or people, you may wish to go into partnership. A formal partnership agreement can set out your arrangement so that you and your partner are aware of all your responsibilities. An agreement can also set out a procedure for termination, retirement, or sale of the business. While setting up a formal agreement may present an upfront cost, in our experience such costs are minimal compared to determining a dispute where no agreement exists.

You might wish to operate your business using a company, by setting up a registered corporate entity. Corporate structures can provide some level of protection for directors and officers, as they have their own legal status. However, there are ongoing costs associated with this structure and annual reporting obligations.

Some people also like to set up their business using a trust as it can offer taxation benefits. It is important that a trust is set up properly to ensure that you can obtain the benefits you expect.

Buying or selling a business

If you have decided to buy a business or if you are looking to sell your business, there are a lot of things for you to consider. Not only will you need to negotiate the terms of the sale agreement, you will need to take into account any incidental agreements, such as leases or franchise agreements, consider the GST implications, and make sure that any staff arrangements comply with your legal obligations.

Franchises

If you are buying a franchise, the Franchising Code of Conduct applies to set out your rights and responsibilities as well as those of the franchisor. Not every franchise is created equal, so it is important to do your due diligence and understand your obligations, including the financial obligations, before finalising a purchase.

Business contracts

To run your business effectively, you will likely enter into a number of contracts that outline your legal rights and responsibilities. Depending on what type of business you run, you might have supply or service agreements, partnership or shareholder agreements, loan agreements, employment contracts, or licence agreements.

Commercial and retail leases

If your business occupies premises, chances are you will need to enter into a commercial or retail lease. Similarly, if you own commercial or retail premises that you rent to somebody running a business, you will want a carefully drafted lease agreement with the terms and conditions for occupation of the premises. To avoid disputes in the future and ensure a balance of rights between the parties, our experienced lawyers are able to assist.

Debt recovery

In a perfect world, you would never have to chase the payment of invoices. In reality, it is likely that some clients or customers will be slow or refuse to pay. The best approach to chasing debts will likely depend on the identity of the debtor and the sum owed. When dealing with companies, it might be best to serve a statutory demand. In contrast, if the debtor is a sole trader or partnership, you might wish to pursue payment in the Local or District Court. You might also want to enter into a deed with a debtor for the payment of the debt. No matter what is owed and by who, our experienced lawyers can assist you to navigate the process.

Insolvency

When a company cannot pay its debts when they are due, it is “insolvent”. If your company is facing or is at risk of insolvency, there are options available to manage the situation. If you are a director and your company has cashflow issues, you should obtain legal advice immediately to ensure the best outcome and avoid personal liability for trading while insolvent.

If you need any assistance, contact one of our lawyers at [email protected] or call 02 6686 4233 for expert legal advice.