Register as a Partnership, and open-up multiple resource streams and shared responsibility, without the red tape of a company structure.

P

Partnership Package

$
299.00AUD
(One time cost)*

Package Inclusions

  • ABN Registration
  • Business Name Registration
  • Domain Name Registration (2 years)
  • GST registration
  • PAYG Reminders
  • Partnership Agreement
  • Partnership Checklist

Extras

  • 12-month access to Adminimiser
  • Registration renewal reminders
  • Secure online business document storage
  • Access to our custom educational guides + resources
  • Veromo Welcome Pack incl. hard copy registrations

*Includes 1-2 year registrations. After this term, we can renew them for you.

What it means to be a Partnership

A partnership has a lot in common with a sole trader structure, just with more people. There's also slightly more regulation and admin. A partnership is formed when 2-20 people join forces in an unlimited liability business agreement. This means all profits, losses, responsibilities and liabilities are shared. You'll have access to more resources, but it's wise to get your partnership agreement signed and sealed before kick off.

Why being in a Partnership is right for Max and Peter

Max and Peter

Max and Peter

Starting their Partnership

Max and Peter met at Uni and have been best friends for the past 10 years. They are finally realising their dream of starting a local cafe and with Max’s business acumen and Peter’s skills in the kitchen- it’s a perfect partnership. They wanted to make sure their business was set up in the cheapest and most accurate way possible, so they chose a general Partnership.

This structure means that both Max and Peter have equal authority in the business, so most decisions are made by them together, however, decisions can be made by either partner on behalf of the other- even if the other doesn’t know!

Running their Partnership

The Partnership has its own ABN and Tax File Numbers and is registered for GST. Tax returns for the Partnership are lodged independently of each of the partner’s tax returns.

Both partners are ‘jointly and severally’ liable for all debts incurred by the business. This means that if the business fails, the personal assets of both partners may be seized to pay for any debts or liabilities of the business.

Growing their Partnership

In the future Max and Peter may want to expand the Partnership by including another partner or entity or they can change their business structure if they want to scale up.

Pro's and Con's of being a Partnership

Get excited about:

  • Relatively straightforward set-up and day-to-day operations
  • Shared responsibility with your fellow partners
  • Business partners = more resources, easier to finance
  • Little ongoing paperwork and red tape
  • Partnerships, as an entity, don’t pay tax (but do need a TFN and to lodge a return)
  • You pay tax just on your profit income

But keep in mind:

  • Each partner is personally responsible for all business liabilities, regardless of ownership share
  • Increased liability means your personal assets could be at risk, i.e. your home
  • Partners need to be on the same page: be confident you can work together before you start
  • Can be tricky to change ownership if you ever sell the business

Register as a Partnership today

Get Started

Compare Business Structures

What's The Difference

Compare Business Structures

Company
Sole Trader
Partnership
Ownership & Profits
A company is owned by shareholders, and run by directors - both could be you. Profits are shared.
You get total ownership and control of the business, and its profits.
Partners own and run the business together. You get joint control and profits.
Setup & Paperwork
Increased tax and legal formalities = more complex set-up process and ongoing paperwork.
Easy to set-up, simple to run.
Few tax and legal formalities = relatively simple to set-up and run.
Compliance
High levels of regulation, with additional record-keeping requirements and other obligations.
Less formal or legal processes, with little ongoing red tape.
Less formal and legal processes, with little ongoing red tape.
Liability & Risk
Your liability is usually limited to your ownership share. Increased protection from risk to your personal assets.
You’re personally responsible for all debts incurred by your business, putting your personal assets at risk.
Partners responsibility for all debts incurred by the business (regardless of ownership share) putting your personal assets at risk.
Setup Cost
A company can be expensive to establish and maintain.
Establishment costs are low.
Establishment costs are low.
Raising Capital
Easier to attract funding and investors. Wider capital-raising opportunities.
Your ability to raise capital is limited.
You have greater borrowing capacity.
Tax Basics
Your personal income is taxed lower than the top personal tax rate. The company submits its own tax return, with good tax breaks to be had.
Your net profit is taxed at individual rates, or your overall income tax is calculated at personal rates.
You are taxed as an individual on your income from the partnership, but the business will also need to lodge a separate partnership tax return.