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Rhys Ryan

Legal Researcher at LawAdvisor

3 years PQE
Melbourne, VIC, AU
Profile Activity Network
    Melb uni student id photo %28feb 2015%29
    Rhys Ryan answered a question
    1 lawyer agreed | about 9 years ago

    Architecture business structure

    Hi! Your situation is not an unusual one - choosing the right way to structure your business is among the most important a business owner makes. Using a company structure can be advantageous for a successful businesses, particularly for tax purposes. This is because the company tax rate in Australia is 30%. As a partner in a partnership, you are taxed as an individual at the highest marginal rate, which may be more than 30% depending on how much you earn. Therefore, structuring your business as a company can save you a substantial amount of money.

    Aside from tax, partnerships can have other disadvantages compared to companies. Perhaps the major disadvantage is that as a partner you are personally jointly and severally liable with your other partners. This means that should the partnership fail, or one of the other partners incurs a personal debt, your personal assets can be accessed by creditors.

    A company is different as it is a separate legal entity from the people that own it. This means that as a director of and shareholder in a company you will not be liable for the personal debts of the other shareholders and directors. Moreover, companies are generally “limited liability”, which means that absent any misconduct or guarantees by directors or shareholders, creditors are only able to enforce debts against the assets of the company, plus any money unpaid on shares. As a business owner, this means that you can enter into contracts and borrow money without your personal assets being at risk.

    So depending on your circumstances, it may be a good idea to change to a company structure instead. The best thing to do is to get legal advice - this would mean a lawyer would be able to look at your specific situation to help you figure out what would be best.
    Small Business Legal structures VIC AU
    Melb uni student id photo %28feb 2015%29
    Rhys Ryan agreed with Law Advisor Research Team 's answer on If I have to go to the doctor because a dog bit me, can I send the medical bill to the owner?
    over 9 years ago
    Hi there. Whether you can get the dog owner to pay you medical bill will depend on whether you have a claim for compensation under public liability law. Based on the information provided, it seems that you may have a legal claim against the dog owner for negligence.
    Whether you have a legal claim against the dog owner will depend on many factors, particularly relating to the circumstances surrounding the incident. You would essentially need to prove:
    (a) that the dog owner owed you a duty of care; (b) that the dog owner breached that duty of care (e.g. by failing to keep the dog on a leash); and (c) as a result, you were injured and suffered loss as a result of the dog bite.
    If a successful claim can be made, it is likely that the dog owner would have to compensate you for any loss you have suffered. The amount of compensation you would be entitled to depends on things such as the seriousness of the injury, your age, any ongoing health problems caused by the dog bite, and any out-of-pocket expenses (such as your medical bills).
    There are some limits that may apply to your potential claim against the dog owner. For example, under public liability law, you are generally required to commence a legal action within three years of the date of the incident.
    Melb uni student id photo %28feb 2015%29
    Rhys Ryan answered a question
    1 lawyer agreed | over 9 years ago

    Buying/starting a professional service firm by non-resident

    There are various ways you can structure and run a business in Australia, each involving different legal obligations. The professional services firm in Queensland you are considering buying may currently be structured as a proprietary company, a partnership or sole proprietorship.


    Proprietary company


    Proprietary companies in Australia are regulated by the Corporations Act 2001 (Cth). This legislation allows foreign citizens to be directors of companies. However, for proprietary companies, there must be at least one director who ordinarily resides in Australia. This means you can be a director of the Queensland business you are considering buying, but you would need to appoint an additional director who lives in Australia.


    Australian law also places special legal duties on directors of companies. For example, a director needs to know what their company is doing and must ensure the company keeps proper records. If you intend to be a director of the Queensland business, you will still be required to comply with your legal duties as a director even though you are based overseas for most of the year.


    If you simply intend on becoming a shareholder of the business (and not a director), then your control over the running and management of the company will be limited to your rights as a shareholder. For example, you would be entitled to vote at general meetings but you would not be able to set the strategic direction of the business, as this power sits with the director(s) of the company.


    Partnership


    If the Queensland business is structured as a partnership, you would be joining the existing partnership as a partner of the firm. This would require you to sign an accession deed under which you would agree to be bound by the terms of the partnership agreement. This document sets out how the partnership operates, including your level control over management of the business. Importantly, partners in a partnership owe special legal obligations to each other and one partner’s liability can affect the entire partnership. Subject to the terms of a partnership agreement, there are generally no restrictions on a foreign resident becoming a partner of a partnership in Australia.


    Sole proprietorship


    If the Queensland business is currently operated as a sole proprietorship, this could present difficulties for you when purchasing the business. Without a company or partnership structure, it is possible that the outgoing principal holds all the business agreements (such as leases and customer contracts) in his or her own name. Assigning these agreements to you as the incoming purchaser may be a difficult and time consuming process.

    Other issues to consider


    You should also be aware that, as a foreign resident, you may be taxed by the Australian Taxation Office on your Australian-sourced income, such as the money you earn working in Australia running the Queensland business.


    We suggest that you speak to a lawyer about the various legal issues that you may face in purchasing and running the Queensland business, regardless of how it is structured. A lawyer can help you understand your options, the risks you may face in buying the business, and your legal responsibilities after purchase. By pressing the "Take Action" button - which opens late July 2015 - LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services.

    Immigration & Migration Skilled migrant visas QLD AU
    Melb uni student id photo %28feb 2015%29
    Rhys Ryan answered a question
    3 lawyers agreed | over 9 years ago

    Importing Cocaine

    Drug importation is a serious criminal offence in Australia carrying significant penalties. The penalty for importing a ‘border controlled drug’ such as cocaine is 2 years or $72,000*, or both. If the amount of cocaine imported is greater than 2 kilograms, the maximum penalty increases to life imprisonment and/or $1.35 million*.

    In Australia, if a person is found guilty of a crime, the court will impose a sentence that reflects the severity of the offence in all the circumstances of the case. This means that the maximum penalty available will not necessarily be imposed by a court.

    When sentencing an offender, the court will consider many factors such as the nature and circumstances of the offence, the impact on the victim, the offender’s remorse and cooperation with police, and the offender’s character and personal circumstances. Any previous offences will also be considered by a court.

    Given the seriousness of the penalties attached to drug importation, it is recommended that you speak to a lawyer about your case. By pressing the "Take Action" button - which opens late July - LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.

    (*Penalty amounts effective from 31 July 2015)
    Crime Drug importation or trafficking NSW AU
    Melb uni student id photo %28feb 2015%29
    Rhys Ryan answered a question
    7 lawyers agreed | over 9 years ago

    Trust

    A trust is an arrangement where one person or organisation (the trustee) holds assets (the trust property) on behalf of another person (the beneficiary). Trusts can be established for a number of reasons such as tax planning, providing for children or charitable causes.

    The requirements for setting up a trust depend on the type of trust you want to establish and its purpose. To create any trust in Queensland, you will need to:

    • select a trustee who will agree to be responsible for administering the trust in accordance with the terms of the trust deed;
    • have a lawyer prepare a trust deed (a legal document that sets out the rules for establishing and operating the trust) that is to be signed by the trustee;
    • give the assets (even if only a nominal amount) to the trustee;
    • pay stamp duty to the Office of State Revenue if a trust is created over ‘dutiable property’, as that term is defined in the Duties Act 2001 (Qld); and
    • apply for an ABN and TFN for the trust online via the Australian Business Register or through a lawyer or accountant.

    You should also be aware of additional legal requirements that apply to particular types of trusts. For example: a trust used to run a business must be registered for GST if annual turnover is $75,000 or more; a trust used to run a self-managed super fund must ensure it complies with the relevant superannuation and taxation laws that apply to it; and charitable trusts are subject to special laws and may be eligible for tax exemptions.

    You should speak to a lawyer if you want to set up a trust in Queensland. By pressing the "Take Action" button - which opens late July - LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services.


    Trusts, Wills & Estates Trust QLD AU