Companies & Trusts

Companies & Trusts

Two of the most frequent business structures in Australia are companies and trusts. Due to the various regulatory criteria and regulations that must be satisfied in order to operate these company structures, establishing and understanding how they work can be difficult.

First and foremost, you must decide whether your business will be registered as a private or public company, as this will affect the conditions you must complete in order to register. The registration process might be perplexing in both circumstances, especially if you have never done it before. Our lawyers at Nicholas James Lawyers have helped businesses with the incorporation process, and we encourage you to contact our team if you require advice on the different requirements for a proprietary and public company.

A trust, in comparison, is a legal partnership between a trustee and a beneficiary in which the trustee manages the trust’s assets for the benefit of the beneficiary. As a result, the trust will create a divide between the legal and beneficial interests, making trusts one of the more difficult corporate structures to administer and comprehend.

The main characteristics of a trust are:

  • The trust itself cannot enter transactions which means the trustee must enter into all transactions on behalf of the trust, making the trustee the owner of the legal interest in the trust property
  • Trust assets are separate and not included in the trustee’s own assets or estate
  • The trustee has the obligation to manage and dispose of the assets
  • The beneficiaries will gain a beneficial interest from the trust assets and can expect the trustee to act in their best interests.
  • The establishment and management of a trust are very important as if it is found to be incorrect, the trust may be found to be a sham.

When a contract isn’t entirely clear, it’s critical that the contracting parties seek legal advice. Contract disputes can swiftly develop to the point where each party threatens to terminate the contract due to the other party’s alleged breach of the contract.

Our commercial team at Nicholas James Lawyers have extensive experience in drafting and reviewing Trust Deeds and can provide you with the relevant legal advice to ensure you make well informed decisions.

At Nicholas James Lawyers, we realise how perplexing the process of forming trusts and companies may be.

We strive to make the process as simple as possible by taking the time to learn about your needs and goals so that legal documents and choices are made in your best interests.

If you’re considering forming a trust or a company but aren’t sure where to begin, contact Nicholas James Lawyers Essendon team today.

Send us a message