subject: Confused About Company Formation? Why Not Use A Company Formation Service? [print this page] The fantastic thing about the Internet these days is that if you don't have time to do something or if you don't know how to do something,, you can always find someone else to do it for you. A company formation is no different! In fact, in Australia, like other countries, there are a few ways to do company formation.
There is a sole proprietorship, partnership, LLC and a proprietary limited company also known as a PTY LTD company. Most people aren't even certain of the differences of these company formations let the only one how to incorporate so one thing I would suggest to you is to actually find a company that gives company incorporation.
These firms already know all of the legal guidelines in your individual country and can work forth in order to provide you with the most excellent services and info to aid incorporate a business. A PTY LTD would agree to you and your business to act as an individual entity. This means that the business or company would end up having its own lawful accountability. For instance, if you were to by hook or by crook get in danger with the law using your company or someone may sue you for something you have done wrongfully, you by yourself would not be held responsible for those actions.
In regards to the manager of a company not being eligible for the amount overdue of the company so that they are not able to be sued they need to garuantee that they as the director follow ethical and professional business practice and do not void any of their obligations as to the governing laws of the country that the firm is set up in. If they do so they then can become liable for debts incurred by companies.
In some cases you got in difficulty with debt, you would have your car or home taken away from you. On the other hand, when you are a formed company, or registered company, you will not be seen as a conjunction of the company. If money was required, it would be taken from the business you own, not your own assets.
This is a great relief for many companies out there! It doesn't mean they are doing unlawful things, but they are reassured that if at any time something did happen, at least it would happen to the company, not them directly. I think most people would agree that they would instead money be taken from their business or have their company liquefied than to lose all of their personal assets! After you figure out how to incorporate, Then the next step will be to look out WHOM can incorportae. The answer: Anyone, as long as you are over 18 years of age, have an Australian resident as a director and have not been bankrupt in the last 5 years.
If you are a group of individuals or an individual you can set up a PTY LTD or incorporate a business. Often the only downside or disadvantage TO company incorporation is the price for it. This is one of the reasons it's vital that you shop around and look for the best price for your budget. But, let it be said, this is an significant part of every business.
