Essays on The Distribution of Business Structures in Australia Case Study

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The paper 'The Distribution of Business Structures in Australia " is a good example of a business case study. Research conducted on Australian businesses indicated that sole traders are the most popular business structures comprising about 50% followed by companies 33%, partnerships 16% and other structures less than 2% (Australian Government 2011). Andran (2010) maintains that the choice of a business structure is one of the critical challenges facing people who intend to start-up businesses and sustain them in the long term. The best structure for a business depends on a number of variables including the expected income from the business, the number of relationships involved and the expected business lifetime.

In determining the type of business structure to apply, several factors need to be considered. Firstly, one needs to assess the business needs in terms of experience, knowledge and determination which are all pivotal in running a successful business. Secondly, legal requirements with regard to legal formalities required for the proposed business need to be evaluated and the taxation process determined. Risk is the third factor that should be considered which mainly depends on the amount of money invested in the business.

These factors are all essential in determining the business structure that fits best to a given business idea. The distribution of business structures in Australia as earlier mentioned can be analyzed based on the advantages and disadvantages of each of the structures. The sole trader kind of business structure is evidently the most popular in Australia. The major reason why people prefer this kind of business is the ease of start-up. In actual fact, it is the easiest and the simplest form of business among all the other types.

No legal documents or filling requirements are needed when starting up the venture except for the Schedule C found in the individual tax return. The federal employer ID number is also not required as the business can be run under the Social Security Number of the owner. Another reason why sole trader business is common among Australians is due to convenience whereby the owner can run it concurrently with his formal employment.


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