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#1013405
Solo Lawyer
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Dear ComponentGuy

The best way to limit your liability is to set up a private company ie a Pty Ltd company. Your liability as a shareholder is limited to the value of your shares. Your personal assets are not at risk if you set up a private company.

You can set up a Pty Ltd company yourself for about $400 via the ASIC website. Most of the information you need can be found on the ASIC website here –
http://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Starting%20a%20company%20or%20business

One thing to remember about setting up a private company is that you will have to have at least one director. A director can be personally liable for their conduct as a director. This is also explained on the ASIC website –
http://www.asic.gov.au/asic/asic.nsf/byheadline/Your+company+and+the+law?openDocument

The use of a family trust does not have any impact on liability. It is often used by businesses to legally reduce tax.

Finally, there are also ways of legally limiting your liability for the products you sell. You have to write in specific clauses into either your terms and conditions or contracts.

I hope that helps.

Michael Terceiro
Solo Lawyer
http://www.terceiro.com.au