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1 BUSINESS ENTITIES BUSINESS ENTITIES Business Structures By Cosimo Cannata, I.T.C.G. “Leonardo Da Vinci” Piazza Armerina, a.s. 2009-2010

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Page 1: 1 BUSINESS ENTITIES Business Structures By Cosimo Cannata, I.T.C.G. “Leonardo Da Vinci” Piazza Armerina, a.s. 2009-2010

1

BUSINESS ENTITIESBUSINESS ENTITIESBusiness Structures

By Cosimo Cannata, I.T.C.G. “Leonardo Da Vinci”Piazza Armerina, a.s. 2009-

2010

Page 2: 1 BUSINESS ENTITIES Business Structures By Cosimo Cannata, I.T.C.G. “Leonardo Da Vinci” Piazza Armerina, a.s. 2009-2010

Cosimo Cannata

1.1. Operation Of A Small Operation Of A Small BusinessBusiness

Sole Trader Partnership Discretionary Trust Unit Trust Company

Page 3: 1 BUSINESS ENTITIES Business Structures By Cosimo Cannata, I.T.C.G. “Leonardo Da Vinci” Piazza Armerina, a.s. 2009-2010

2.2. Sole TraderSole Trader

John J Smith "John J Smith

Nursery" Personally liable Personal assets

Page 4: 1 BUSINESS ENTITIES Business Structures By Cosimo Cannata, I.T.C.G. “Leonardo Da Vinci” Piazza Armerina, a.s. 2009-2010

Cosimo Cannata

3.3. PartnershipPartnership

Liability is unlimited

Written Partnership Agreement

Page 5: 1 BUSINESS ENTITIES Business Structures By Cosimo Cannata, I.T.C.G. “Leonardo Da Vinci” Piazza Armerina, a.s. 2009-2010

Disadvantages of Disadvantages of PartnershipsPartnerships

•In a general partnership, each partner is responsible for the acts of all other partners… one person messes up, everyone suffers•The business has a limited life•Potential for conflict between partners...

Page 6: 1 BUSINESS ENTITIES Business Structures By Cosimo Cannata, I.T.C.G. “Leonardo Da Vinci” Piazza Armerina, a.s. 2009-2010

Possible disadvantages of a Partnership...Possible disadvantages of a Partnership...

Page 7: 1 BUSINESS ENTITIES Business Structures By Cosimo Cannata, I.T.C.G. “Leonardo Da Vinci” Piazza Armerina, a.s. 2009-2010

Settlor

Trustees

4.4. Discretionary TrustDiscretionary Trust

Page 8: 1 BUSINESS ENTITIES Business Structures By Cosimo Cannata, I.T.C.G. “Leonardo Da Vinci” Piazza Armerina, a.s. 2009-2010

Alternative to a Partnership

Units Trustees Settlor (may have)

5.5. Unit TrustUnit Trust

Page 9: 1 BUSINESS ENTITIES Business Structures By Cosimo Cannata, I.T.C.G. “Leonardo Da Vinci” Piazza Armerina, a.s. 2009-2010

Public Company Private Company Private Company - the

most popular entity for small businesses

One Director and one Shareholder

Separate legal entity Not subject to a time

requirement Discretionary Trust wound

up

6.6. CompanyCompany


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