Organization Structures

Each person establishing an enterprises either for profit or non-profit purposes should choose an appropriate legal structure to suit their own situation. Basically, there are four types of legal structures organized by individuals. And all organizations has its advantages and disadvantages you have to look into it.
FOUR TYPES LEGAL STRUCTURES
STRUCTURES FORMATION ADVANTAGES DISADVANTAGES
SOLE TRADER Set-up by sole trade own name.
usually is one man operation.
They are taxed as an individual. Quick and easy to set-up;
single decision maker. Personally liable to all debts;
sole traders can be sued for everything they own.
The business can bankrupt them.
Not easy to get a break because he is on his own.
Nobody to share or discuss.
Usually the life of business is shorter, once the owner ceased the business gone too.
PARTNERSHIP where two or more people put their share together in the business.
Partnership agreement should drew out how profit are shared, duties sharing and etc. this can be in written or oral.
The partners are individually assessed by the share of the profit. Jobs sharing with active partners.
Able to share and discuss with others partners.
getting short break possible. Each of the partners is liable for the partnership debts.
That means if one of the partner can not meet the debt obligation then others partners have to carry this burden over.
Proper Agreement need to drew out to prevent future conflict therefor extra legal costs needed.
TRUST Running business for the benefit of people specified as beneficiaries,
is established by a legal documents called a Trust Deed.
the person establishing it known as the "Settlor" and name one or more trutees.
It can be run as individuals or as companies. Trust can be taxed instead individuals taxes to beneficiaries. Trustee always hold meeting, share and discuss to other members. The trustees are legally liable for all debts of the trust,
but if there is a shortfall they must meet the shortfall from their own resources.
COMPANY By law company is a legal person-"entity" Company is tax on itself as a flat rate.
This including "private" and "Public" company. Shareholders have limited liability based only the value of shares they owned.
The company is a legal person, it has own "life",
it will not be affect by any individuals situation changed, such as director get "fire" or sell it share. small shareholders usually have very limited power to access into company operation.
Company has more administration works than other legal structures.
The cost of formation is higher, such as licence fee and etc.