How a business is set up, and what that means for borrowing.
17 terms in this topic
An Australian business number (ABN) is the unique 11-digit identifier the ATO issues to a business or other entity through the Australian Business Register.
Read definitionThe Australian Business Register (ABR) is the national register, run by the ATO, that records the identity details of every entity that holds an Australian business number.
Read definitionAn Australian company number (ACN) is the unique nine-digit number ASIC issues to every company at registration, shown on its invoices, contracts and other public documents.
Read definitionA beneficial owner is the natural person who ultimately owns or controls a company, trust or other entity, even when legal title sits in another name.
Read definitionBeneficial ownership is the right to enjoy the benefits of an asset or company, such as income or sale proceeds, even when someone else is the legal owner.
Read definitionA company is a separate legal entity, formed under the Corporations Act 2001, that can own property, borrow and be sued in its own name, independently of its shareholders.
Read definitionA CPA is a certified practising accountant: a member of CPA Australia who has completed an accredited degree, the CPA Program and a period of supervised professional experience.
Read definitionA fleet is a group of vehicles owned, leased or managed by one organisation for business use, from a few utes and vans to hundreds of trucks and plant.
Read definitionHigh net worth (HNW) is an industry label for individuals whose investable assets, net of liabilities, exceed provider thresholds that often overlap with the wholesale client tests.
Read definitionA partnership is a business structure in which two or more people or entities carry on a business together with a view to profit, sharing profits, losses and liabilities.
Read definitionA Pty Ltd company is a private company with its own legal identity that cannot offer shares to the public and limits shareholders' liability to their share capital.
Read definitionA shareholder is a person or entity that owns shares in a company, giving them a share of its profits and value while the directors run the business.
Read definitionSmall and medium-sized enterprises (SMEs) are businesses that fall below size thresholds set by government agencies, regulators and lenders, usually measured by employee headcount or aggregated annual turnover.
Read definitionA sole trader is the simplest Australian business structure: one person owns and runs the business, keeps the profits, and is personally liable for its debts.
Read definitionA start-up is a new business built to find a repeatable, scalable business model under uncertainty, marked by innovation, growth intent and rapid testing rather than steady income.
Read definitionA trust is an arrangement in which a trustee holds legal title to assets and manages them for the benefit of beneficiaries under a trust deed.
Read definitionAn unincorporated business is a business that has no separate legal personality, so its owners contract in their own names and are personally liable for its debts.
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