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BUSINESS ENTITIESBUSINESS ENTITIESBusiness Structures
By Cosimo Cannata, I.T.C.G. “Leonardo Da Vinci”Piazza Armerina, a.s. 2009-
2010
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Cosimo Cannata
1.1. Operation Of A Small Operation Of A Small BusinessBusiness
Sole Trader Partnership Discretionary Trust Unit Trust Company
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2.2. Sole TraderSole Trader
John J Smith "John J Smith
Nursery" Personally liable Personal assets
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Cosimo Cannata
3.3. PartnershipPartnership
Liability is unlimited
Written Partnership Agreement
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Disadvantages of Disadvantages of PartnershipsPartnerships
•In a general partnership, each partner is responsible for the acts of all other partners… one person messes up, everyone suffers•The business has a limited life•Potential for conflict between partners...
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Possible disadvantages of a Partnership...Possible disadvantages of a Partnership...
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Settlor
Trustees
4.4. Discretionary TrustDiscretionary Trust
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Alternative to a Partnership
Units Trustees Settlor (may have)
5.5. Unit TrustUnit Trust
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Public Company Private Company Private Company - the
most popular entity for small businesses
One Director and one Shareholder
Separate legal entity Not subject to a time
requirement Discretionary Trust wound
up
6.6. CompanyCompany