Business structures

How a business is set up, and what that means for borrowing.

13 terms in this topic

Beneficial owner

A 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.

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Beneficial ownership

Beneficial 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.

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Company

A 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.

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Fleet

A 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.

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High net worth (HNW)

High 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.

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Partnership

A 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.

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Pty Ltd company

A 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.

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Shareholder

A 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.

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Small and medium-sized enterprises (SMEs)

Small 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.

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Sole trader

A 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.

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Start-up

A 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.

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Trust

A 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.

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Unincorporated business

An 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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