*Includes 1-2 year registrations. After this term, we can renew them for you.
This is probably the most recognisable business structure. A company operates as a completely separate legal entity, distinct from its owner. The shareholder/s own the company, the director/s govern the company’s activities and, as owner, you could wear both these hats. Expect extensive ongoing admin and regulation but also some good tax breaks, and limited personal responsibility for any liabilities, like company debts.
Lakeside Prestige Real Estate is owned by 3 equal shareholders- Sharon, Joseph and Michael. The 22 real estate offices and their 100 employees are overseen by two directors, Amelia and Geoff.
A company was established after the 3 shareholders decided to unite their independent real estate agencies. This structure ensures that the business operates entirely as it’s own entity. It was more expensive to set up compared to other business structures, however, due to the size and the number of people involved in the business it was the essential choice.
Running a company is complex because different laws, legislations and tax rules apply. Lakeside Prestige Real Estate had to be registered with ASIC and must submit its own annual company tax return along with being registered for GST because the company earns over $75,000 PA. Different tax rates apply and the company has both an ABN and ACN.
However, there are benefits to a company structure. The liability of the business is limited to the company itself, meaning the personal assets of the shareholders and directors are not in jeopardy if things turn sour.
In the early years of business Lakeside Prestige Real Estate experienced company losses, these losses were later used to offset the amount of tax owing, meaning the company was able to invest in opening another office.
A company can grow by calling for investors or it can be sold or acquired.