Basic LAW Essay Example | Topics and Well Written Essays - 1000 words

Basic LAW - Essay ExampleThe stage business that has been decided to be set up is that of transport business. This business operation depart deal with lending car on rental basis to the tourists companies which operates with planning trips for the tourists. Australia is an attractive location for the tourists and thus holds good scope for the business. The cars will be bought new-sprung(prenominal) for providing them on rental to the tourists companies. The business will operate on the type of sole principal. Thus the aim of this paper is to evaluate the advantages and disadvantages of sole merchandise business along with the other realizes for comparing and thus to justify this choice of the business form. The detect of the business would be Lark Travels. Lark is the name of a songbird. The benefits and the drawbacks of registering names for business will also be evaluated in this paper. Sole Trader Business Advantages, Disadvantages, Legal Requirements and Liabilities of the Party Sole trader which has been selected as the form of the business is known to be as the most inexpensive and the simplest structure to be set up. The best way to have a business name is to have it by the traders own name otherwise the trader needs to register the business name with Consumer Affairs Victoria. The sole trader holds the entire liability of the business. The liability holding does not vary in case if the business is registered with a name other than his or her name. An income declaration is of the essence(p) to be included by the sole trader the income which is earned from the business. A business plan is required in case the sole trader is opting for winning loan from any of the financial institutions. The tax is paid by the sole trader at a rate of personalized tax, although he or she whitethorn be required to pay provisional tax. The liability of sole trader business is unlimited and can even broaden up to sole traders personal assets inclusive of any assets which are owned jointly with another person. The advantage of sole trader business is that it bears low fees of establishment. The entire train over the business lies with the sole trader and he enjoys the entire profit from the business. During low business profits, there exist taxation advantages. There is applicability of less(prenominal) legislation in this business form. The only two legislations applicable are Contract Law and Tax Assessment Act. Despite the advantages, the sole trading business can pose as a risk towards the traders personal finances. The capital deems limited by the sole traders personal assets and also there prevails limited expertise of the trader. He is subjected to unlimited legal liability and he is solely responsible for all the debts and liabilities. At times, it may convey hard to pass on ownership1. Partnership Business Advantages, Disadvantages, Legal Requirements and Liabilities of the Parties Partnership businesses are similar to the sole trad er busin