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

2. Cosimo Cannata 1.Operation Of A Small Business  Sole Trader  Partnership  Discretionary Trust  Unit Trust  Company

3. 2.Sole Trader  John J Smith  "John J Smith Nursery"  Personally liable  Personal assets

4. Cosimo Cannata 3.Partnership  Liability is unlimited  Written Partnership Agreement

5. Disadvantages of Partnerships 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...

6. Possible disadvantages of a Partnership...

7.   Settlor   Trustees 4.Discretionary Trust

8.   Alternative to a Partnership   Units   Trustees   Settlor (may have) 5.Unit Trust

9.   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.Company