Advantages and disadvantages of a company structure

A company as a business structure has a number of advantages. These include:

• • being a separate legal entity;
• • perpetual succession;
• • ease of transferring interests;
• • flexibility;
• • limited liability;
• • familiarity;
• • favourable tax rates; and
• • protection to the company name.

However, there are also disadvantages to consider. These include:

• • onerous ongoing compliance obligations;
• • complex governing law (ie Corporations Act 2001 (Cth); and
• • lack of privacy.

See Advantages and disadvantages of a company structure.