Partnership
A partnership is a business structure that involves a number of people who carry on a business together. You may choose a partnership over a sole trader structure for example, if you'll be jointly running the business with another person or a number of people (up to 20).
There are two types of partnerships - general and limited. Partnerships are governed by the Partnership Act 1958.
Key aspects of a partnership structure
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It's relatively easy and inexpensive to set up.
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It requires a separate Tax File Number (TFN).
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If you are carrying on an enterprise, you can apply for an Australian Business Number (ABN), but this is not compulsory.
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It's not a separate entity - like a sole trader, you and your business partners are personally liable for the debts of the business.
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You have shared control and management of the business with your partners.
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The partnerships doesn't pay income tax on the income earned. You and each of your partners pay tax on the share of the net partnership income you each receive.
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Requires a partnership tax return to be lodged with the Australian Taxation Office (ATO) each year.
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Each partner is responsible for their own superannuation arrangements - you are not an employee of the partnership.
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You must be registered for GST if the annual income turnover is $75,000 or more